Freelancers condemn tax proposals

The government’s plans for Family Business Tax have been condemned by an organisation that represents freelance managers.

In its formal response to the proposals for so-called income shifting, the Professional Contractors Group (PCG) says the government’s plans rest on fundamental misunderstandings of basic business concepts such as profit, income and risk.

The PCG’s managing director John Brazier, explained that the government is trying to claim that any profits from a business must be taxed as the personal income of the individual within that business whose labour generated them.

He said it is plainly absurd and seems to be trying to say that hundreds of thousands of businesses are not businesses at all, but just individuals who should be treated as earning salaries.

The PCG’s response also criticises the proposals for being unworkable and the organisation has also attacked the consultation process.

Brazier really hopes the government will see sense and reconsider its plans, because businesses, tax experts, the thousands of people who’ve signed the e-petition and the MPs from all parties who’ve signed the Early Day Motion are all sending the government a clear message that these proposals are not fair and will not work.