IR35 has plagued freelancers and sole traders since 1999 and the PCG is now calling on the coalition to make sure they take their time over any changes to ensure a fair, well thought out system.
The PCG has been vocal in its call for the legislation to be abolished but wants to make sure its successor is workable. The group has been working with independent experts and listening to its members' experiences.
The organisation's MD, John Brazier, advises the government not to rush their review, "just get it right".
Gordon Brown introduced the IR35 intermediaries legislation when he was chancellor because he was concerned that some freelancers were avoiding paying tax by using false contractor status. However, the lack of clarity in the definition of a contractor has made it difficult for freelancers to understand the legislation.
The government has not benefitted from this cumbersome regulation; only about 10 of the 1,500 IR35 cases that the PCG was involved with resulted in the freelancer paying additional tax.
It is still unsure exactly when IR35 will go but it looks as if it will be with us at least until September. Last week's budget included an exemption for new employers meaning that they will not pay NI contributions for their first 10 employees. However, this exemption does not apply to contractors who fall within the rules of IR35. Also, freelancers operating through a Managed Service Company will not be covered by the exemption.
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