Tuesday, 16 October 2012

Government urged not to damage contracting sector with tax changes

The government is being urged to make necessary changes to the UK tax legislation without risking damaging the contracting sector.The call comes following a recent MPs’ tax report which found that too many public sector organisations, including the BBC, use tax and National Insurance arrangements which allow individuals to pay less income tax.The PCG has warned that moves to address tax loopholes could mean that public sector organisations end up unable to use contractors and freelancers at all.John Brazier, managing director of contractors’ organisation PCG, said, “It may be that current tax policy does not include appropriate provision for this way of working, which can give rise to tax avoidance opportunities for a minority, but the solution is not to outlaw freelancing wholesale within the public sector, as Margaret Hodge and her colleagues are dangerously close to suggesting within their report.”He added, “The Government, rather than taking the retrograde step of attempting to push back against that change simply because it causes a few taxation difficulties, must develop a more sophisticated tax policy that changes with it. A tax system equipped to deal with 21st-century working."

http://www.50percenttax.co.uk/index/2012/10/9/government-urged-not-to-damage-contracting-sector-with-tax-c.html

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