Liberal Democrat MP Lorely Burt’s Early Day Motion to abolish IR35 and “remove unnecessary barriers to enterprise” has been wholly welcomed by The Professional Contractors Group (PCG). John Brazier, managing director of PCG, expressed gratitude toward Burt on behalf of the group, which represents the UK’s freelancers.
The motion was tabled by Burt in an effort to eliminate the distress caused by IR35 to the UK’s freelancers and contractors, suggesting that the effort contractors put into proving their legitimacy in HMRC investigations could be better expended at work earning more money to put into the economy.
Burt told Consultant News: “PCG has made me aware that of the 1,468 IR35 cases known to them, 1,462 have resulted in no extra tax being owed and there is no evidence that the tax is raising any money for the Exchequer. In light of the current economic difficulties, I support PCG and its members and have raised this EDM to press the Government to abolish IR35 at the earliest opportunity to give freelancers a fair chance.”
PCG has over the last ten years continuously appealed to the Government to repeal the tax law, considering it to be one of PM Gordon Brown’s worst mistakes.
Said Brazier: “I would urge more MPs across all parties to support the Motion to send a clear signal to Government that it must act now, acknowledge just how damaging IR35 is to freelancers and the UK economy and abolish it.”