Cautious Welcome

PCG has cautiously welcomed the announcement of the tax and national insurance regime, in today's Budget  review, as it pertains to freelancers.

PCG chairman Simon Juden said it provides a great opportunity to address the inequitable and inconsistent IR35 legislation, as well as the complexities involved in the taxation of freelance consultants and contractors.

“We look forward to engaging positively with Government on these issues, as we have long campaigned for consistency, clarity and common sense in the taxation of freelancers,” he further explained.

Tax Alignment

“We also welcome, in principle, discussions about aligning the income tax and national insurance systems. This represents an opportunity to remove distinctions which are meaningless in practice.”

PCG does agree that all individuals and businesses must pay their fair share of NICs and tax, irrespective of legal form and lauds the Chancellor's renewed efforts to curb tax avoidance,

it also believes that the Government should focus on evasion of tax and not confuse it with curbing tax avoidance.