TaxPersonal TaxFormer skier makes IR35 plea to Blair

Former skier makes IR35 plea to Blair

A former Olympic skier has written to prime minister Tony Blair saying he could never have built up his software business had IR35 been in place ten years ago.

Ronald Duncan, chairman of @software plc, said IR35 was ‘driving some of our brightest and most innovative technologists oversea’.

IR35 regulations came into force in April last year, and removed many of the tax advantages previously held by contractors who operated through personal service companies. Many believe it is unfair because it taxes one-person businesses more harshly than other organisations.

Duncan, a millionaire businessman, said IR35 was threatening the flexibility in the labour market and discouraging staff from setting up new small businesses. He pleaded with the prime minister to intervene before it is ‘too late’.

The Professional Contractors Group, which was set up to fight the IR35 rules, applauded Duncan’s action saying it showed the government to be totally isolated. The PCG next month take its fight against the government to the High Court.

The government denied that IR35 was driving contractors abroad. IR35 ensures everyone who meets the accepted definition of employees paying tax on broadly the same basis, a spokesperson for the Inland Revenue said.

Links

Contractors face IR35 investigations

Businesses warned to prepare for IR35

@software plc online

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