Gareth Williams calls on Blair to repeal IR35 in letter to The Times
The Times today, prints an open letter to Tony Blair from Gareth Williams, Chairman of the PCG.
Text of letter:
IR35 law is harming Britain
From the Chairman, Professional Contractors’ Group
Sir, Despite vigorous opposition from eminent leading counsel appointed by the Inland Revenue, the Professional Contractors’ Group (PCG) has been given permission to judicially review the Government’s IR35 legislation.
In opposing permission, counsel for the Inland Revenue sought to show that PCG had a hopeless case. In granting permission, Mr Justice Gibbs ruled that, far from being hopeless, this organisation has a well arguable case on all three points of its application under EU and human rights law, and that the main contention made by the Inland Revenue was “artificial”.
A great deal of taxpayers’ money has already been spent defending IR35 from criticism made not only by PCG, but by the Confederation of British Industry, the Institute of Chartered Accountants in England and Wales and the Federation of Small Businesses. Much more will be spent if the Inland Revenue persists in defending legislation that penalises small companies, particularly in the ‘‘knowledge economy’’, the very sector on which the Government claims our country’s future depends.
Surely the time has now come for the Government to intervene and repeal this unwarranted legislation, which singularly fails to understand the way the knowledge-based sector of the economy works, and to revisit the flawed assumptions upon which it is based. This should be done in consultation with all interested parties.
Continued uncertainty will only prolong the damage that IR35 is doing to small businesses and to the UK economy as a whole. The Professional Contractors’ Group is ready to engage in constructive dialogue with a view to resolving this matter as soon as possible.
Yours faithfully,
GARETH WILLIAMS
(Chairman, Professional Contractors’ Group),
Building 2,
Shamrock Quay,
William Street,
Southampton SO14 5QL.