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Conservatives plan tax reform

15 February 2010

Organisations representing interim managers and other freelance professionals have welcomed Conservative Party plans to reform the controversial IR35 tax system.

According to a recent article in the national media, 600,000 self-employed people may be set to benefit from the proposals, which would see them pay £2.40 a week under Class 2 National Insurance Contributions as opposed to the Class 1 alternative.

Shadow Business Minister, Mark Prisk, also suggested that a lot of work needs to be done in order to reverse current government policy regarding unfair business taxation.

He is reported as saying that the current government has treated the self-employed disgracefully. More often than not the government has treated them as if they are on the fiddle, which is wholly unacceptable.

He went on to say his party wants to reform the system and hinted that the IR35 rules need to be re-examined, as contractors were previously allowed to work for their customers through limited companies to reduce their income tax liabilities.

The PCG, which represents the interests of interims and other professional contractors, has campaigned on the issue of IR35 and said that freelancers will cast a watchful eye on this year's general election campaign.

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