Professional contractors condemn tax proposals

The TUC has come under fire for its views on tax reform from an organisation representing freelance managers and consultants.

The Professional Contractors Group (PCG) has written to the union condemning its new report on tax avoidance.

In a letter to TUC general secretary, Brendan Barber, the PCG’s managing director, John Brazier, said that his group believes that a serious debate about the fundamental structure of the UK’s tax system is needed.

Unfortunately, Brazier said in the letter, the PCG feels that this report lacks the necessary clarity of vision to stimulate one, and instead entrenches long-standing misconceptions about taxation in the UK.

Mr Brazier also pointed out the weaknesses of the report’s analysis of the proposed new legislation on income shifting. The proposed legislation will not penalise the seriously wealthy, but will instead harm hard-working small business owners who have structured their businesses in line with long-standing government advice.

As a major disincentive to enterprise, the PCG feels it will hamper job creation and social mobility in the UK and the group is therefore surprised not to see the TUC expressing concern at the proposals, added Mr Brazier.

PCG has launched a dedicated campaign website against the new Family Business Tax (www.familybusinesstax.co.uk), and its online petition and Early Day Motion in the House of Commons continue to attract support.