IR35 - The Election Tool
IR35 has become a contentious issue in the run up to the election. Each party has their viewpoint and would seem are trying to secure the one-man operation voters out there.
Labour
The labour government is sticking to its original standpoint, of everyone paying his or her fair share of the tax burden.
Paymaster General Dawn Primarolo has come out saying that IR35 is not a tax aimed at small businesses but a tax aimed at people that are actually in the role of employers and employees at the same time and only paying tax for one.
Labour say the legislation as fair and just, and after being upheld in a court of law, it is here to stay!
Tories
The conservative viewpoint is one where IR35 is seen as a burden on small businesses and they claim that the legislation would be repealed and replaced with a “properly targeted” legislation.
They feel the law is affecting entrepreneurship and needs to be revised. The Tories do however feel that some form of law does need to be put into practice to curb misuse of personal services companies for tax or NIC purposes.
They thus claim that if elected IR35 would definitely be repealed and a more “IT friendly” law would be drafted in its place.
Liberal Democrats
The Liberal Democrats are also in favour of repealing IR35 and they also feel that it is having a negative effect on entrepreneurs and small business.
They would also reduce the “red tape” surrounding small businesses and thus enable the one-man operation to develop and flourish.
IR35 would therefore be replaced with a law that would promote the development and growth of the IT industry.
IR35 is thus an election tool that, it would seem, holds the key to a number of votes
Where will yours be going?