It had been hoped that a Conservative government would scrap IR35 but it now appears that this may not be the case. A Tory spokesman said last week that this may not be a viable option.
The PCG, who have been campaigning against IR35 for a long time, are now believed to be working alongside the Conservatives to come up with ways to make the legislation fair. A spokesman from the Group said that if the tax rule could not be scrapped they would like to see it radically simplified.
The Tories, through their shadow Business Minister Mark Prisk, have pledged to undertake a comprehensive review of tax matters relating to small businesses if they win the election. Prisk said that contractors contribute £21 billion to the UK economy and they do deserve a better deal. He went on to say that the Conservatives want a long term solution to the problem and will continue to discuss matters with the PCG in order to come up with a solution.
The PCG is seeking a clear, stable and long lasting tax regime for contractors and SMEs. This also involves the fair treatment of ancillary services such as recruitment and umbrella companies. Their spokesperson added that the taxation of small businesses is now very complex and IR35 makes up just one part of this complexity. They strive to see a system that is certain, fair and involves no element of risk.
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