Ministers' commitment to IR35 improvements welcomed by PCG

Date: 10th May 2011

UK contractors concerned about the state of the controversial IR35 tax legislation could be among those encouraged by recent events.

Exchequer secretary David Gauke recently outlined his commitment to improving the controversial tax legislation after describing the UK's contractors as a "significant and important part of the business community".

The comments have been welcomed by leading contractor industry body PCG. Writing for the PCG's Freelancing Matters Magazine, Mr Gauke said HM Revenue & Customs is looking to undertake a "complete overhaul" of the way IR35 is administered.

"Put simply, I see this as an issue we have to get right if the tax system in this area is to be fair and if professional contractors are to be able to provide their services in the most appropriate way," he said.

PCG chairman Chris Bryce said: "We are pleased to have this personal commitment from the Minister, recognising the major difficulties with IR35 that freelancers have faced over 11 years."

The expert claimed that the PCG takes the challenge of clearing up any uncertainty surrounding IR35 seriously.

"We are determined to clean up HMRC's administration of IR35 once and for all," he added.

Posted by Emily Smith