PCG slams Pre-Budget Report for failing freelancers

Date: 14th December 2009

The government's Pre-Budget Report does not make good reading for the nation's freelancers, including sole traders.

This is the view of PCG, the industry group representing freelancers, which pointed out that "difficult decisions" on the sector have been "put off" by the chancellor of the exchequer.

Alistair Darling announced a range of measures potentially impacting on the self-employed in the Pre-Budget Report on December 9th.

These include a scrapping of the planned increase to corporation tax for smaller businesses and an increase to employers' National Insurance Contributions (NICs) of an extra 0.5 per cent from 2011.

However, other contentious issues, including future policy on IR35s and "income shifting" between spouses, were not covered by the report.

PCG managing director, John Brazier, commented: "There was a lot of talk by the Chancellor today about fairness, however this PBR has failed the fairness test for the UK's 1.4 million knowledge based freelancers.

"IR35 was not abolished, NICs are to go up in 2011, by double what he previously said and the only crumb of comfort is that the small business corporation tax rate rise is to be deferred."

Posted by Thomas Fletcher