PCG gives cautious welcome to review of business taxation

PCG has cautiously welcomed the announcement in todayís Budget of a review of the tax and national insurance regime, as it pertains to freelancers.

ìThis offers a clear opportunity to address the unfair and inconsistent intermediaries legislation, known as IR35, as well as the enormous complexity of the taxation of freelance consultants and contractors,î said PCG chairman Simon Juden. ìWe look forward to engaging positively with Government on these issues, as we have long campaigned for consistency, clarity and common sense in the taxation of freelancers.

ìWe also welcome, in principle, discussions about aligning the income tax and national insurance systems. This represents an opportunity to remove distinctions which are meaningless in practice.î

PCG agrees with the Chancellor that all individuals and businesses must pay their fair share of NICs and tax, irrespective of legal form. While the Chancellorís renewed efforts to curb tax avoidance are understandable, PCG believes that the Government should focus further on evasion and not confuse the two.