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Contractors urged to sign Income Shifting petition

Published on Jan 2, 2008 |

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The Professional Contractors Group is urging contractors to protest against the so-called income shifting legislation by signing a petition on the No.10 website.

The threat of moves against income splitting in family owned business was first announced in this year's Pre-Budget Report. It follows on from the Arctic Systems court case - which HMRC lost.

The Government wants to prevent business owners from sharing their income with other family members in order to reduce shared tax bills. The new legislation is aimed at ensuring that family members receive a realistic 'market rate' for any income they receive from small businesses.

The consultation period ends on 28th February 2008. The Government wants the new income splitting legislation to take effect from April 2008.

PCG Chairman David Ramsden, who started the petition, said: "All freelancers and small business owners should sign this petition: the proposals are not fair, not workable, and not justified by any of the arguments made in the Treasury’s consultation paper."

You can sign the petition at http://petitions.pm.gov.uk/IncomeShifting1