The government should scrap punitive tax measures that it has imposed on professional contractors and interim managers.
The call comes from the Professional Contractors Group (PCG) following a survey that show confidence plummeting among the UK's freelancers.
Commenting on the research, PCG managing director John Brazier said the results show significant concern about the economic outlook.
He went on to say that if the government is as serious about assisting small businesses as it claims to be, it must act now by abolishing IR35 and giving a firm commitment not to press ahead with its disastrous plans for a Family Business Tax.
The results of PCG's annual membership survey show an index of business confidence on numerous key measures, including the overall economic climate and new business opportunities. Both fell sharply for the year 2008-9.
The top problem facing PCG members remains IR35, the law that tries to tax freelancers like employees and makes it impossible for them to self-assess their tax bills.
In total 65% of PCG members identify it as a problem, and for 40% it is the top problem they face.
Mr Brazier added that times are tough for freelancers, as for everyone, but the biggest problems are the ones created by the Government.