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Recognition of small business tinged with disappointment

The leader of Britain’s freelance community has given a guarded welcome to today’s Budget.

“We welcome the Chancellor’s commitment to a ‘light and limited’ touch for small businesses, share his view of the importance of technology and skills and are pleased that inspections and regulations will be slimmed down, but are disappointed that the Chancellor’s missed the opportunity of creating a fairer tax regime for freelancers and small businesses,“ said PCG chairman Simon Juden.

“Those caught by IR35 cannot claim training against their tax, unlike the consultancies they’re competing against. IR35 makes self-assessment virtually impossible, which seems to contradict the Chancellor’s pledge to enhance small business support.

PCG is also disappointed that Mr Brown didn’t use the Budget to clarify the S660 situation – here’s an anomaly that affects small family businesses unfairly,” he continued. “We believe that where families share risk, they should also be able to share reward. That is why we are supporting Geoff and Diana Jones of Arctic Systems in their landmark S660 case; their hearing began at the High Court today.

...disappointed that the Chancellor missed the opportunity of creating a fairer tax regime for freelancers.

Simon Juden - PCG

“The Chancellor says there are 4,000 new business start-ups each week, many of which will involve self-employed people,” said Dr Juden. “We had hoped to see greater clarification and consistency on tax measures in the Budget.”

Published: Wednesday, 16 March 2005

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