Calls to abolish IR35 tax rules in Budget 2009
[22/4/09 Update - IR35 wasn't even mentioned in Budget 2009, so it is here to stay!]
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Following the recent Early Day Motion in the Commons calling for IR35 to be repealed, a leading freelance organisation has called for the controversial tax to be abolished during Budget 2009.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.
For essential tax updates, subscribe to our small business newsletter.Posted April 9, 2009
