The latest IT Contractor News from Contract Eye

The UK's leading contractor organisation has launched a major media campaign leading up to the Budget, aimed at defending contractor businesses from the backlash against the use of limited companies, due to possible misuse of the structure by high profile public sector employees in recent months.

Backlash against limited companies needs to be redressed

The PCG wants more recognition of the contribution contractors and freelancers make to the economy, and also to ensure that legitimate limited company owners are not regarded as 'disguised employees' for tax purposes.

The media campaign comes weeks after the Ed Lester case, where the head of the Student Loans Company was found to have been remunerated via a 'personal service company' rather than via the company payroll, like all other staff members.

Over the following weeks, many further examples have been uncovered of potential 'disguised employment', and as a result, many inaccurate media reports have been published, many attempting to tar all professional limited company directors with the same brush.

The implication being that all individuals supplying professional services via a limited company are somehow avoiding tax. This, of course, is untrue.

The PCG campaign will comprise a total of 30 adverts across 9 national newspapers, with the slogan "To think big about UK growth, think small."

The publicity is aimed at influencing the attitude of the Government and media towards the freelancing sector, in the run up to the March 21st Budget.

Small businesses need to be backed, not bullied

Commenting on the launch, John Brazier, MD of the contractors' group said:

"Distrust created by the Ed Lester case has impacted on the hundreds of genuine freelance interim and contractor businesses who are working to benefit companies and organisations in both the public and private sectors."

"Quite simply we had to speak up using the tools available to us to redress the balance and ensure the hysteria does not cause those in power to make a snap judgement in error that could damage growth for generations to come."