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Contractor action plan over IR35 legislation



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.


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