TaxCorporate TaxGovernment wants to replace IR35

Government wants to replace IR35

Freelance tax rules central to reforming small business tax, says Lib-Cons

Unpopular freelance tax rules are set to be reviewed under plans revealed
today by the coalition government.

In its
detailed
programme
of government, the Lib-Cons will review IR35 as part of a
“wholesale review” of small business taxation. The review will seek to replace
it with simpler measures.

These plans will “prevent tax avoidance but do not place undue administrative
burdens or uncertainty on the self-employed, or restrict labour market
flexibility”.

Trailed by chancellor George Osborne at his speech during
yesterday’s
CBI dinner
, the government will reform the corporation tax system
and reduce the headline rate.

Personal allowances for income tax will rise from April 2011. Its NI
threshold increase for employers will go ahead, but employees will still face a
1% hike planned by the previous government.

The Conservatives will still push for a married couples tax allowance.

Tackling tax avoidance will follow along the lines laid out by the Lib-Dems
in their election manifesto

Non-doms’ taxation will be reviewed, while the proportion of tax revenue
accounted for by environmental tax will increase.

Further reading:

Osborne’s
corporation tax cuts will cost £4.5bn: Vantis

Labour
spent “against” accounting officer advice

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