In an interview with the Daily Telegraph, Mark Prisk has signalled that IR35 could be abolished. Speaking after the emergency budget, the small business minister said the small business taxation review, which includes IR35, will commence this summer.
The coalition government wanted to make sure that they could undertake a comprehensive review of small business taxation in a way that makes the need for the current IR35 legislation redundant.
Prisk is reported as saying. “But we want to make sure whatever we change is a lasting settlement. One of the problems with IR35 is that it’s a constantly changing set of rules.”
The PCG, who represent contractors and freelancers across the UK are said to be very pleased with the comments from Prisk. PCG chairman Chris Bryce commented;
“We are delighted that Mark Prisk has said publicly what he has said to us privately and we are very pleased that important organisations now take the same view as us. There is still much work to be done, but we hope we can work with the government and these other organisations to find a fair and acceptable settlement for all freelancers and contractors.”
Comments from contractors responding to the emergency budget said that they wanted IR35 to be abolished so they are likely to also be happy about what the small business minister has said.
Update: The Department of Business has confirmed to Shout99 that the position is still to review IR35 and no announcement has been made that it is to be abolished. The interview with Richard Tyler took place several weeks ago.
A BIS press office told Shout99: “Mark Prisk did the interview several weeks ago. He said that the coaltion Government was committed to reviewing and simplifying tax measures for small businesses – and one area that was mentioned was IR35. When asked about specifics, he said that any announcements about tax would be made in the Budget.”
