Free Accounts Software for All Small Businesses
You can now download TAS Basics for FREE. It’s the complete working program and there’s no charge, no obligation and no time limit. Get it now!

Calls to abolish IR35 tax rules in Budget 2009

print  e-mail 

[22/4/09 Update - IR35 wasn't even mentioned in Budget 2009, so it is here to stay!]

----------

Following the recent Early Day Motion in the Commons calling for IR35 to be repealed, a leading freelance organisation has called for the controversial tax to be abolished during Budget 2009. But one expert suggests caution in that it could be replaced by something even worse!

IR35 Early Day Motion

The EDM raised by Lorely Burt MP states that freelancers, contractors and other groups caught by the IR35 rules should be able to spend their time generating wealth for the economy rather than struggling through waves of legislation. You can read more in our dedicated article here. There have been 49 signatures (including from some Labour MP's) at the time of writing. It is worth noting that an EDM provides an indicator of opinion in the Commons, and nothing more.

Contractors' Group

The leading organisation behind the opposition to IR35 for almost a decade - the Professional Contractors Group - has called for the legislation, and other tax measures, to be removed via the forthcoming Budget:

Chris Bryce, chairman of the Group, said that freelance workers have an important role to play in the economic recovery:

"The flexibility, skill, and knowledge they provide will be instrumental in meeting the needs of businesses, generating future wealth for the economy. Therefore the tax and regulatory burdens upon them must be removed.

Be careful what you call for!

In an interesting piece on our partner site, Contract Eye, Kate Cottrell - a leading employment status expert - suggests that if IR35 were abolished, it could be replaced by something worse which could affect an even wider number of people. You can read more here.

Posted April 9, 2009

Latest articles in Budget 2010
 
Emergency Budget - what are the key personal tax changes?
An overview of the main personal tax changes announced in the Emergency Budget, including changes to income tax, taxable bands, NICs, and pensions. [June 24, 2010]
 
Emergency Budget - what are the key business tax changes?
The key business tax changes announced in this week's Budget, including changes to Corporation Tax, NICs, VAT, Capital Allowances, and other business measures. [June 24, 2010]
 
Business world welcomes "no pain, no gain" Budget
Business groups have generally welcomed the measures contained in the Emergency Budget. Although most people in the UK will be affected by the spending cuts and tax increases, small businesses seem to have been spared the pain which some experts have predicted. [June 23, 2010]
 
Emergency Budget - Key Points
The key points from today's Emergency Budget - VAT will rise to 20%, CGT for higher earners will rise to 28%, and corporation tax will decrease from 2011... [June 22, 2010]
 
Small businesses stand by for Emergency Budget measures
The chancellor is set to deliver his "Emergency" Budget from 12.30 today. As ever, we will report updates here on Bytestart as soon as the announcements are made. [June 22, 2010]
 
Leading accountants give their emergency budget predictions
Leading accountants and tax advisers, PricewaterhouseCoopers LLP, have released their comprehensive predictions for the emergency budget on June 22nd. [June 14, 2010]
 
Emergency Budget - what can small businesses expect on June 22nd?
The 'Emergency Budget' is the most anticipated in a generation. With the public finances in a dire state, what can small business owners expect from the Chancellor on June 22nd? [June 2, 2010]
 
Emergency Budget date announced by Chancellor
George Osborne has announced that the coalition's Emergency Budget will be on Tuesday June 22nd, 2010. [May 17, 2010]
 
Budget 2010 - Summary of main points for small businesses
Following the Budget speech, we will update this page with the main points, as they affect small business people. [March 24, 2010]
 
Budget 2010 - how to follow proceedings
When the Chancellor delivers his Budget today, we will update Bytestart with the key points - those which are relevant to small businesses in particular. [March 24, 2010]
 
Budget 2010 - Accountant warns of further NIC and income tax rises to fund deficit
With the pre-election Budget just days away, a leading accountancy firm suggests that good news for employees is unlikely, with further rises in income tax needed to cut the national debt. [March 19, 2010]
 
Accountants not in favour of National Insurance increase
With Budget 2010 just weeks away, a leading accountancy body has polled its members to see whether the UK's budget deficit was best dealt with by either cutting public spending, or increasing NI contributions. [March 12, 2010]
 
Budget 2010 date set for 24th March
The Chancellor, Alistair Darling, has confirmed that the Budget will be unleashed on 24th March, just weeks before the expected date of the General Election. [March 10, 2010]
 
Pre-Budget Report 2009 - Key Points
The key points from the 2009 Pre-Budget Report which includes a delay in the proposed hike in the small companies' corporation tax rate, and freezes to income tax and NIC rates and allowances - aside from the pre-announced new rate of tax for higher earners. [December 9, 2009]
 
Leading accountancy firm gives Pre-Budget Report predictions
KPMG has given its Pre-Budget Report predictions - the firm suggests that individual taxpayers, particularly higher earners, will be eyeing Wednesday's announcement "a little nervously"! [December 7, 2009]
 






Click Here





Our Partners
Key Services
Key Services
Useful Guides
Click Here