We are a week away from learning the result of the 2010 election and discovering which party, or coalition of parties, will govern the nation. And yet we still don’t know how any of the mainstream parties plan to manage the nation’s finances, much less whether they have specific policies on anti-contractor measures, such as IR35.
Time is running out to pin down prospective parliamentary candidates (PPCs) on where they stand. And, such is the uncertainty of this election, that even in ‘safe seats’ sitting MPs are campaigning hard, just to be sure of success. What that means is, up to and including Thursday 6th May, your local PPCs are in listening mode. Take advantage of this rare opportunity, and let them know your concerns about contracting and related issues.
The Labour Party’s and Gordon Brown’s personal track record of anti-contractor legislation needs little explanation. According to a senior member of the accountancy profession interviewed by ContractorCalculator this week, one-man service companies are now ‘victimised generally’. The burden of regulation on small business has never been higher. All this, says our colleague who has been in practice since 1981, started happening from the time Labour gained victory in 1997.
Many small business owners in general, and contractors specifically, are natural Tory voters. Ironically, this could be why, despite the sterling efforts of PCG (formerly the Professional Contractors Group) to secure a firm commitment on contractor taxation, the Conservative Party’s manifesto focuses on tax breaks for ‘proper capitalists’. These tend to be the large corporations and City firms that benefit from exploiting the labour of others, rather than contractors who make their money from their own expertise and toil. The PCG has received an assurance from the Conservatives that a Tory government would undertake a general review of business taxation, including IR35. However, anyone can offer a ‘review’; it is actions that count, and it is notable that there are no Conservative Party manifesto pledges either to get rid of IR35 specifically or more generally to support the contracting community.
On the face of it, contractors might get a fairer hearing from the Liberal Democrats, with the PCG’s John Brazier saying he is confident of the Liberal Democrats’ support to repeal IR35. However, not only is this party untested in government – well, not since the early 20th Century, anyway – but it also has policies that could act against the interests of small businesses. Yes, the Liberal Democrats are pledged to reduced red tape, but the cost of the party’s proposed Universal Service Code will hit small business hardest and it is a manifesto pledge that HMRC be given new powers to ‘tackle tax avoidance and evasion’, which might bring in an even worse version of IR35.
So you be the judge and, in the next few days before the election, lobby your potential future MPs on the contracting and other issues that concern you most. It really is vital that we all lobby politicians of all parties now, while they remain in listening mode.