The Liberal Democrats and Conservatives have joined forces to form a coalition Government after an uncertain period following the General Election on 6th May 2010, which resulted in a hung parliament, the first since 1974. The Professional Contractors Group (PCG) has welcomed this fact and is confident that the difficulties that contractors face will be dealt with by the new government.
There are many issues waiting to be tackled by the coalition government, not least of which is the current economic crisis. Contractors and freelancers have wanted a change in IR35 legislation to make it fairer for all. The PCG believes that the newly formed government will indeed address the subject of IR35 legislation as both the Conservatives and the Liberal Democrats had previously expressed the need for change regarding this outdated legislation.
The Managing Director of PCG, John Brazier said:
“We are obviously in uncharted waters. However, PCG has established a good working relationship with both the Conservatives and the Liberal Democrats in Opposition, and we are confident this will continue in Government. Both parties have expressed the need for change with regards to IR35, and both parties value the flexible, skilled workforce PCG members provide.”
Many contractors are hindered by the unfair IR35 legislation which makes it much harder for them to contribute to the recovery of the United Kingdom.
However, the PCG is in no doubt that there are tough times ahead for everyone, including contractors as the new Government seek to make necessary changes in order to aid financial recovery for the UK, which may include job cuts.
The PCG intends to work closely with the newly formed coalition Government to encourage them to make changes such as reform of the United Kingdom’s small business tax system and either reform or abolition of IR35 legislation.
