Conservatives would abolish IR35

Published on Aug 17, 2007 |

The following news article is from August 2007. For the latest on the Conservatives' approach to IR35, read our latest post from June 2009.

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The Professional Contractors Group say they would welcome proposals published today by the Conservative Party's Competitiveness policy group, chaired by John Redwood MP.

The proposals, which are not official Conservative party policy, include the abolition of IR35 and a reversal of the increase in the small firms rate for Corporation Tax announced in the last Budget.

PCG chairman David Ramsden said: "IR35 is not only unworkable and unfair, it is also intensely resented by the tens of thousands of freelancers who feel as though they are often treated as criminals when in actual fact they are making an enormous contribution to the economy. PCG hopes that now the Tories have put abolition of IR35 on the agenda, other parties will engage in a sensible debate too."

ContractorCalculator, longterm associates of the Contract Eye team, also reported that the Economic Competitiveness Policy Group stated that not only would IR35 be scrapped, but they do not intend to replace it with anything, effectively turning the clock back.

When asked about the recent Managed Service Company legislation, the Group said they would review it, but provided no commitment to scrapping it.

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