Following an article on Contractor UK’s website last week “Scrapping IR35 is not the answer, say Tories,” PCG, the largest UK organisation representing freelancers and contractors, are remaining optimistic in their campaign to overturn the UK’s IR35 leglislation.
According to a PCG spokesman they have now had a series of “fruitful and productive” meetings with various political parties and they detect from all political sides “a desire for a revision of IR35 legislation”.
In a letter to PCG Chairman Chris Bryce, the Shadow Business Minister Mark Prisk MP said that due to PCG’s strong representations to him and to Shadow Treasury Ministers “a Conservative Government would undertake a fundamental review of small business taxation matters, including IR35.”
Bryce said “it is our clear understanding from our series of face-to-face talks is that the Conservatives would set IR35 as a priority for a newly established Office of Tax Simplification. This body will be made up of tax experts with whom PCG would work closely”.
In the letter Mark Prisk went on to say:
“…we recognise and value the contribution of freelancers and we are well aware of the way in which the current Government has treated them. We want to deal with this problem comprehensively, in a way which provides us all with a lasting solution, not a short term fix.”
According to Bryce IR35 has caused “massive and unjustifiable problems for freelancers”. Despite this, the nation’s 1.4 million freelancers still contribute £21 billion to the economy. “It’s time to look at making the whole system clearer, fairer and better for all” he said.
Commenting on the letter from the Conservative Shadow Business Minister, Bryce 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. PCG, however, will not be complacent. It will continue to make the strongest possible representations to any Government of whatever colour after the Election to remove IR35 which is a grossly unfair and badly drafted piece of legislation.”
Simon McVicker, Head of Public Affairs at PCG said:
“We are surprised that one e-mail from an unnamed Conservative source questions the real progress made in a series of long and fruitful talks PCG has had with a Conservative team, led by senior frontbench spokesmen. The message we are getting, underlined in the recent statement from Shadow Business Minister Mark Prisk, is a much more positive one. This is a sensitive issue and exceptionally important to PCG’s 20,000 members; for their sake it is important we get a fair and amicable resolution to this piece of unfair and unworkable legislation that is IR35.”
