A contractor group is urging its members to claim for company
benefits in the light of the Government's tax legislation for
freelance IT staff, IR35.
The Professional Contractors Group (PCG), representing 10,000
contractors, bitterly opposed the new tax rules that came into
force from 7 April this year. The rules require IT contractors to
pay the same income tax and national insurance as their full-time
counterparts.
The group argues its members should receive extra benefits.
Similar legislation to IR35 was introduced in the US where
contractors have managed to argue for benefits such as share
options. These are worth more than holidays and sick pay.
The PCG is also urging companies to offer contracts to
freelancers who make it clear they are not employees of the
company. These will be used by members to try to convince the
Inland Revenue that they should not be taxed in the same way as
permanent employees.
