'Real momentum' behind IR35 campaign, says expert

Date: 24th June 2010

Britain's sole traders could be among those to be encouraged by recent claims that the campaign to see IR35 tax legislation abolished is gathering pace.

The Professional Contractors Group (PCG) has welcomed recent comments made by small business minister Mark Prisk with regard to the controversial tax ruling.

In an interview with the Telegraph newspaper, Mr Prisk said that the coalition government's "comprehensive review" of business taxation will seek to make IR35 "redundant".

However the minster said the legislation will only be replaced once a long-term alternative is agreed.

"We want to make sure whatever we change is a lasting settlement. One of the problems with IR35 is that it's a constantly changing set of rules," he commented.

Chris Bryce, chairman of PCG, said the organisation was "delighted" that there is now "real momentum behind the abolition of IR35".

"We are delighted that Mark Prisk has said publicly what he has said to us privately. There is still much work to be done but we hope we can work with the government … to find a fair and acceptable settlement for all freelancers and contractors," he added.

Posted by Thomas Fletcher