Feeds

Chancellor under fire for IR591 tax terror

'Fess up, Gordon

  • alert
  • submit to reddit

The essential guide to IT transformation

MPs and pressure groups have roundly condemned the Chancellor for his refusal to consult with UK firms over plans to introduce a controversial and potentially punitive tax regime for owner managers of small-incorporated businesses in his impending 2003 Pre-Budget Report.

The tax, dubbed IR591 by the Professional Contractors Group (PCG), was the subject yesterday in Westminster of a second early day motion, this time sponsored by Brian Cotter MP.

Cotter's motion calls for MPs to urge the Chancellor to be open and to publish further details of his plans to "ensure that the right amount of tax is paid by owner managers of small incorporated businesses".

In addition it presses the Government to introduce a proper period of consultation prior to any new legislation being unveiled and demands that the Chancellor introduces a "fair and transparent system of taxation" for small businesses.

The motion slams the Chancellor's "excessive tinkering that has created an impenetrable maze of taxation law which most small businesses struggle to comprehend".

Ian Durrant, PCG's director of external affairs, said it is disingenuous for the Treasury to portray IR591 as an anti-tax avoidance measures, when it will in fact "constitute tax increases for almost every owner-managed incorporated business in the UK".

Durrant urged freelancers and small business owners to lobby their respective Members of Parliament to oppose IR591 before Budget day on 17 March.

"There are around 3.8 million small businesses in the UK, generating 52 per cent of the country's total turnover, and employing 12.6 million people. We believe that a large proportion of them could be adversely affected by these proposals," he said.

PCG has set up a dedicated website outlining the danger of IR591 to IT contractors and small businesses, which can be found here. ®

Related story

Chancellor under fire for IR591 tax terror

The essential guide to IT transformation

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
prev story

Whitepapers

A new approach to endpoint data protection
What is the best way to ensure comprehensive visibility, management, and control of information on both company-owned and employee-owned devices?
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.