3rd August 2010

Govt ''in unique position to tackle IR35''

Umbrella company users could benefit from the government''s unique position to tackle IR35.

The government is in a unique place to address the problems of IR35, an expert has suggested, which could be great news for contractors using umbrella companies.

Simon McVicker, head of public affairs at the PCG, has said it is important that campaigners for changes to this law do not lose their nerve.

He said: "All freelancers have their part to play in the upcoming review process, we need people to demonstrate their support for the PCG lobby, to join [and] to participate in the debate."

The government are largely on the side of freelancers and contractors and see the profession as a "key component" to creating a more flexible workforce, he claimed.

Mr McVicker highlighted the fact that the Coalition Agreement singled out IR35 legislation for special attention as one of the signs that there is a real commitment to tackling this issue.

Chris Sanger, head of tax at Ernst and Young, recently told ContractorUK.com that IR35 could benefit from simplification and that this could minimise the problem of tax avoidance.ADNFCR-3595-ID-19918195-ADNFCR

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