Tories pledge support for contractors
Cameron government would scrap IR35
Small businesses and contractors have been promised the world by the
Conservative Party.
According to website
contractoruk.com, the Tories would
abolish the controversial tax rule
IR35, reverse the tax rate on small
companies, (pushed up by 3% in the last Budget) and review anti-avoidance laws
for managed service companies.
The Tories are due to announce a new deal for business on Friday and are due
to include pledges to cut red tape by £14bn.
Much of the annual saving is expected to come from scrapping huge amounts of
legislation which the party sees as unnecessary, outdated or excessive.
A spokesman for contractors group, PCG said: ‘We hope that the party will
adopt proposals to do this, and abolish IR35 accordingly – once employment
status is truly clear, IR35 will be unnecessary.’
Further reading:
PCG: Freelancers don’t trust taxman
Lords push for review of small business tax
New IR35 rules: passing muster