The Government's e-envoy, Alex Allen, is in discussions with the Treasury regarding the IR35 proposals.
He recently expressed concerns about the proposals, and is said to be worried that the tax change could stunt the growth of the e-commerce industry.
A spokeswoman for Allen's office said, "Alex Allen has certainly not criticised Government policy. At a conference he said that he was aware of concerns in the IT industry about the impact of the Inland Revenue's proposals and his office was discussing this with the Treasury. But he made it clear that policy on this was for the Treasury to decide, and that the Treasury has to balance these concerns against the need to protect the tax system against abuse."
The Professional Contractors Group (PCG), a lobbying group representing the interests of 5,000 contractors, has been in contact with Allen to express its concerns not only about the IR35 proposals, but in regards to the knowledge based sector. A PCG spokeswoman said, "It was a swift and encouraging response and we hope to meet with Allen soon. It is indicative that Allen has understood the sector and immediately expressed reservations about the IR35, according to reports."