According to a recent manifesto published by the IT trade association Intellect, a fundamental overhaul of the UK tax incentive system could create as many as 250,000 jobs for IT contractors.
Intellect claim that current tax rules prohibit rather than encourage investment in UK SMEs, and particularly those in the technology sector. Their manifesto calls on the government to introduce financial incentives for IT start ups and companies capable of “changing the way we work”.
They also suggest that tax breaks for those considering investment in such companies would add greater stability to the software and technology market.
A spokesperson from Intellect said that a radical change in tax incentives would breath new life into the IT sector as well as creating a constant and fresh supply of work for IT professionals. The right tax environment, including a review of IR35, would also create a solid platform for a first-class digital infrastructure, which should be high on the list of priorities for the new government.
© 2010 All rights reserved. Reproduction in whole or in part without permission is prohibited.
Image: Bench Monday, Balancing Act Edition by gomattolson
