With relatively few details on the policies from either of the main parties in the forthcoming election, we thought we would share with you a press releasee we recently came across concerning personal service companies.
In a letter to the Professional Contractors Group (PGC), the group that attempted a legal challenge to prevent IR35 legislation from becoming law, Mark Prisk (The Conservative Shadow business minister) stated:
“A conservative government would undertake a fundamental review of small business taxation matters including IR35……….”
“We recognise and value the contribution of freelancers and we are well aware of the way in which the current government has treated them. We want to deal with this problem comprehensively, in a way which provides us all with a lasting solution, not a short term fix.”
As with most things I hear from politicians I don’t really understand what he is actually alluding to. If he is saying that under a conservative government, as part of their desire to simplify the overly complicated tax system in the UK they will repeal the IR35 legislation, then that will certainly secure a large number of votes. This of course assumes that it is not going to be replaced with something equally controversial!
Both as a tax consultant and as business owner/manager, being able to have access to the qualified, experienced, professional and flexible workforce offered by freelance contractors is invaluable. If this can be done without the associated risks for either the end user, were they trade as sole traders or consortiums, or IR35 deemed payments for the contractor it would be a very welcome change indeed.
Over the last two years there have been a large number of highly skilled individuals across a variety of disciplines who have found themselves without employment. Having overcome the uncertainty of being masters of their own destinies and keen to maintain control over their futures, a large number have turned to the private contractor route.
This sector provides an invaluable service, giving access to a highly flexible workforce during what can still be considered uncertain times. Any changes in the underlying legislation in this area which reduces the levels of risk, administration and uncertain for all parties concerned can only be seen a good thing!
Bring on the election!
