PGC urges freelancers to oppose 'income shifting'

Posted on 29 February 2008

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The Professional Contractors Group (PCG) has condemned government proposals for a Family Business Tax on 'income shifting', claiming the plans are "conceptually retarded".

PCG's managing director John Brazier said: "The Government's plans rest on fundamental misunderstandings of basic business concepts such as profit, income and risk."

The Group criticised the proposals for being "unworkable" and putting disproportionate pressure on family businesses.

As a representative body for freelancers, Mr Brazier commented: "We really hope the government will see sense and reconsider its plans. Business bodies, tax experts, the thousands of people who've signed the e-petition and the MPs from all parties who've signed the Early Day Motion are all sending the government a clear message that these proposals are not fair and will not work."

The PGC claim that the government has neglected to discuss the principles behind the legislation throughout the consultation process.

Implementation of Family Business Tax will require freelancers and small business owners to keep record of each contribution made to the business - resulting in a significant burden of red tape.

Category: Tax & Legislation News

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