The Professional Contractors Group (PCG) has won the first round in its legal battle with the Government to have IR35 overturned, after being granted High Court permission to have the measure judicially reviewed.
The organisation, which represents around 10,000 contractors in the IT and engineering sectors, told the court earlier this week it believed the tax rules contravened their human rights and unfairly discriminated against small businesses. It also argued that the legislation discouraged contractors from trading in the UK.
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"IR35 is unfair and unworkable; now we are confident we will prove that it is also illegal," commented PCG chairman, Gareth Williams. "IR35 should now be suspended until this issue is resolved, and we ask the Government to consider very carefully whether it should waste more taxpayers' money defending the indefensible."