How can 5% cover training, insurance and legal costs, minister asked

Firstly I would like to thank you for your contribution. The tone is a world away from that of your colleague, the Paymaster General, who alienated the entire sector by casting IT consultants as 'Tax Cheats'. What is the remit of the Cabinet Office?

How can you justify allowing us a meagre 5% allowance for expenses against an MP who is handed a tax-free £50k expense allowance (ie 100% against the salary of backbencher).

How are we supposed to pay for training courses (@ £1500 a week a go), accountancy services, IR35 contract status legal costs, hardware, software, professional indemnity & public liability insurance, admin costs & so forth from this?

Why should we have to pay for these items that exceed the 5% rule from net income?

Why haven't you forced large consultancies who supply consultants working alongside freelance IT contractors to pay PAYE and NI on 95% of the revenue they generate from the same client?

How are we supposed to bid for contracts when we cannot determine the IR35 status of the work & therefore factor the increased costs into the contract? 28 day turnaround from the IR is rubbish, it does not happen now with just a tiny number of consultants using this service. Do you accept this puts us at a severe disadvantage to the large consultancies?

The biggest problem is your government's lack of understanding of the problem it is trying to tackle, exacerbated by a resounding failure to consult. We do have employment rights from our clients and do not want them either. The nature of IT consultancy is short-term contracts for highly-skilled workers, companies pay for our skills for specific projects. Why should we not be allowed to establish ourselves as legitimate businesses? Your government is trying to destroy the flexible IT sector that so much of industry relies upon.

Why couldn't you simply introduce a rule which says for a Personal Service Company you cannot take more than 50% of the turnover in dividends?

Can you name a single professional body which supports IR35?