General election threat from UK's freelancers

Freelancers are delivering an ultimatum to politicians to change IR35 or they will change their vote, according to a survey from freelancer organisation, the Professional Contractors Group (PCG).

Ninety-one per cent of its members stated they will be more likely to vote for a party that commits to abolishing the IR35 tax regulation, seen by most freelancers as complex and unfair to professionals running their own small businesses. The figures emerged after an online survey, which also investigated attitudes to the economy and the group's deteriorating relationship with HM Revenue and Customs.

PCG Managing Director, John Brazier, said: "This confirms just how damaging IR35 has been. There are an estimated 1.4 million business-to-business freelancers alone in the UK.

"As the parties draw up their manifestos, they cannot fail to take note of this level of discord - nine out of every ten of our members have essentially stated it will affect the way they vote. IR35 is a restrictive, unworkable, and unfair regulation and it's high time for a fairer taxation system to be developed for freelancers."

HMRC

The survey also exposed a significant lack of confidence in HM Revenue and Customs by PCG members, with just four per cent describing the Government department as 'transparent'. Only 17 per cent found that HMRC offered 'competent advice'.

Mr Brazier said the negative opinion of HMRC by members was a real cause for concern: "It is a real shame that we cannot have a tax authority that respects the needs of the UK's smallest businesses and in turn wins the respect of freelancers throughout the UK.

"These figures highlight major problems with the way in which freelancers are treated. Legitimate freelancers find it difficult to seek reliable, useful advice from HMRC on how they run their businesses and instead find themselves under suspicion at every turn."

Elsewhere in the survey, PCG members expressed pessimism about the current economic climate with only 19 per cent expecting the economy to improve in the near future, and just over half expecting the situation to get worse. PCG members were less pessimistic about their own situations, with less than half (46 per cent) expecting things to get worse.

Mr Brazier said: "These figures serve to underline the serious times we are now in. It is more important than ever for any future Government to commit to helping freelancers, as ultimately, they will have a key part to play in the UK's economic recovery. With the specialist, flexible, knowledge based skills they provide, freelancers are essential in securing the UK's future prosperity."