Drop IR35 in PBR, pleads contractor group

Chancellor Alistair Darling has been urged to drop the controversial IR35 tax
rules in his pre-Budget report in order to help struggling contractors and
freelancers through the recession.

The Professional Contractors Group said that freelancers had become one of
the first victims of the recession, with turnover falling by a third and the
number of freelancers in work dropping 12% over the last year.

It argued that removing the “largest single impediment to freelance working”
would improve contractors’ ability to retain work and would cost the government
little, according to

In a letter to Darling, PCG chairman Chris Bryce said the legislation creates
massive and crippling uncertainty for freelancers and that “IR35 is not known to
be a revenue-raising measure”

Bryce also asked the government to drop its proposals on income shifting,
which has already been postponed.

“Treating jointly-owned businesses any differently to other businesses is
iniquitous and unfair,” he said. “These proposals fail to take into account the
shared risk and responsibility involved in running a business, and would harm
thousands of such enterprises.”

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