Income shifting plans postponed

An organisation that represents interim managers and other freelancers has welcomed news that plans for so called income shifting are being postponed until 2009.

The temporary reprieve from the planned Family Business Tax was announced in the recent budget and the Professional Contractors Group (PCG), says it is pleased the Chancellor has apparently listened to a growing chorus of criticism from businesses, accountants and other professional bodies.

PCG’s managing director, John Brazier, said he was glad that Mr Darling has taken notice of not just the experts but the thousands of people who signed the petition on the 10 Downing Street website, the MPs who signed the Early Day Motion against the proposals and many others. There has been a clear consensus that the Family Business Tax proposals would not have worked.

He also said he hopes the next phase of consultation will result in a sensible outcome and the PCG has pledged to provide full input into the next phase of consultation.

Mr Brazier went on to say the PCG will hold the Chancellor to what he had promised - a stable business tax regime that is responsive to business needs.