Government to review IR35

Date: 21st May 2010

Sole traders working in the UK could be among those to be encouraged by a recent announcement about the IR35 tax law.

Earlier this week the coalition government announced that the rules will be discussed a part of a "wholesale review" of the UK's business tax regime.

The announcement was welcomed by a number of industry bodies, with the Professional Contractors group (PCG) stating that IR35 is now "set for the scrapheap".

John Brazier, the organisation's managing director, claimed the announcement was a victory for the PCG's campaign to have IR35 abolished.

"With the end of the iniquitous IR35 we have the opportunity to achieve fairness," he commented.

"PCG has led the way in seeking the abolition of IR35 on behalf of our members. It has caused great heartache to many people. The cost in distress has been high, but the revenue for HMRC has been minimal."

Further details of changes to the UK's tax system are expected to be announced in the emergent Budget on June 22nd.

Posted by Anthony Burns