PCG claims victory over Tories IR35 commitment

Date: 1st April 2010

Freelance contractors and small business owners could be among those to benefit from a comprehensive overhaul of the UK's tax regime should the Conservative Party win the next election.

Shadow business minister Mark Prisk has announced that a Tory government would review the tax system, including the unpopular IR35 rules.

Mr Prisk said the "complex and unfair" rules have generated "barely" any revenue for the treasury despite costing businesses £73 million over the last ten years.

The Professional Contractors Group (PCG) claimed the announcement was a victory in its long running battle to have IR35 removed.

Chris Bryce, the organisation's chairman, said: "This shows that the Conservative Party has been listening to and understanding the messages that PCG has given them.

"We believe this solution has the potential to lead to a fairer and more workable tax regime for the vast majority of those who work freelance."

IR35 was introduced by the government in 1999 in a bid to eliminate the avoidance of tax and National Insurance contributions.