Contractor expenses 'warning' for the government
Posted on 10 October 2008
The government has been warned against removing tax relief on expenses for contractors.
According to the Professional Contractors Group, which represents freelancers in the UK, those working through umbrella companies particularly need protection.
PCG's managing director John Brazier said the organisation supports the presence of umbrella companies in the marketplace.
"We do not want to see any heavy-handed action that would make them unviable. At the same time, we are aware that the way some umbrellas use expenses policies is a genuine problem."
The PCG argues that freelancers must continue to be entitled to tax relief where genuine expenses are concerned, even if they use umbrella companies.
Formed in May 1999, the PCG provides independent contractors and consultants with a representative voice against the original IR35 tax proposals.
Over the course of the last decade, it has become a recognised professional body acting on behalf of self-employed professionals in the UK.
Categories: Tax & Legislation
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