The Professional Contractors Group (PCG) has welcomed the proposal of another early day motion on IR591 and small businesses, sponsored this time by Brian Cotter MP.
He is calling upon MPs to sign up to the following motion: “That this House condemns the Chancellor's refusal to consult with small firms regarding his announcement on IR591 in the Pre-Budget Report 2003; urges the Chancellor to be open and to publish further details of his plans to 'ensure that the right amount of tax is paid by owner managers of small incorporated businesses'; presses the Government to introduce a proper period of consultation prior to any new legislation that is unveiled; further notes that the Chancellor's excessive tinkering has created an impenetrable maze of taxation law which most small businesses struggle to comprehend; concludes that it would be more sensible to ensure that all forms of income are taxed equally; and therefore calls on the Chancellor to reduce burdens on business by introducing a fair and transparent system of taxation.”
PCG’s director of external affairs, Ian Durrant, was supportive of the motion and urged PCG members, freelancers and small business owners to contact their respective Members of Parliament. “Since the publication of the Pre-Budget report, we have been calling for clarity and for consultation about paragraph 5.91, and we have lent our support to a similar early day motion put forward by Mark Prisk MP,” he said. “We think that the small business community should be consulted about any proposed measures, as outlined on our dedicated website, www.ir591.org.uk. There are around 3.8 million small businesses in the UK, generating 52% of the country’s total turnover, and employing 12.6 million people. We believe that a large proportion of them could be adversely affected by these proposals.”
Freelancers and small business owners wishing to support the action should encourage their respective MPs to add their names to the list, if they have not already done so. This needs to be done before Budget day on 17 March. “You can write to your MP at the House of Commons, Westminster, London SW1A 1AA,” said Ian, “or send a fax through www.faxyourmp.com; typing your postcode will identify your constituency MP.
PCG is concerned about the lack of consultation, and about the shadow of uncertainty being cast over the small business community. It is also unhappy about the potential changes being portrayed as anti-avoidance measures, when they would in fact constitute tax increases for almost every owner-managed incorporated business in the UK.
PCG is hosting a series of regional freelancer seminars during February and March, at which tax specialist Dave Smith from Accountax will share with delegates his expert views on the possible implementations of IR591 and on other tax issues affecting the freelance small business community.