Budget2011: PCG encouraged by IR35 plans

THE CONTINUED existence of freelance tax rule IR35 has failed to diminish contractor lobbyists' sentiment that the regime will eventually be reformed.

The Professional Contractors' Group (PCG), which has long argued for a replacement to the current freelance tax regime, said the improvements in its administration - announced in the Budget - were encouraging.

"We intend to play a key part in this process and are determined as a result to exclude all legitimate freelancers from the ongoing threat of an IR35 investigation, with all the uncertainty that brings," said PCG managing director John Brazier.

However, the PCG still believes that a series of simple business tests, which it helped formulate as part of an Office of Tax Simplification committee, would provide add certainty to the regime for freelancers.