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26th September 2011
PCG calls for IR35 explanation
The Professional Contractors Group (PGC) is calling on the government to offer a clearer explanation of why IR35 has been retained.
According to data uncovered in a Freedom of Information request to HM Revenue and Customs, the tax yield from IR35 has been low in recent years and, over the past five years, only 322 cases have been examined.
John Brazier, managing director of PCG, said that these figures do not warrant the “stress and damage done to the UK's 1.4 million genuine freelance businesses”. He added that it also shows that “IR35 is an unwarranted measure introduced by the previous government”.
Meanwhile, Chris Bryce, chairman of PCG and a member of the IR35 Forum, remarked: “I'm amazed, appalled and angry that so many people in the private and public sectors are wasting their valuable time on IR35 if this is all it takes in.
“Chancellor George Osborne simply must remove this barrier to economic growth and do it as soon as possible.”
The figures also showed a sharp decline in the number of IR35 reviews, of which there were 158 in the tax year to April 5th 2007. By the last full tax year, this had fallen to just 23.
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