Point-by-point rebuttal of the government's case for IR35
>Dawn Primarolo has explained to you the reasons why the IR35 legislation was introduced.
=Hardly, Dawn has lied to us and insulted us!
>It is not targeted on the IT industry, but on workers in all industries who have used services companies to avoid tax and National Insurance liabilities which they would otherwise face.
=Except Footballers, Lawyers, etc ..
>The Government believe that people doing similar jobs should pay tax on their earnings on a similar basis
=And so do I, actually
>and the legislation is designed to produce those results.
=But it simply doesn't. Did you bother to check?
>Not only does this ensure a fair tax system,
=It scored 0 out of 10 for fairness
>it also means that measures which are intended to support small businesses can be targeted on genuine entrepreneurs, and are not available to people who are no different to employees.
=And only 5 out of 10 for being properly targeted
>The Prime Minister strongly supports the development of a successful knowledge economy in the UK, and is seeking to make Britain the most competitive environment for business in the world.
=Then why doesn't he listen to us?
>Since 1997, the government has cut tax for small companies by nearly 25% and, from April 2000, introduced a 10p starting rate of Corporation Tax, to support genuine small businesses.
=This one, as far as I am aware, is true.
>According to an independent report by Arthur Anderson/Growth Plus in
January 2001
=Arthur Anderson are in direct competition with IT entrepreneurs. Can they really be independent?
>which benchmarks the UK against the US and major European countries, the UK now provides the most entrepreneur-friendly environment of any major country, fostering growth companies effectively.
=Then why are entrepreneurs leaving in droves?
>And in spite of claims such as those in your letter, there is no concrete evidence of damage to the IT industry as a result of IR35, or of any exodus of skilled workers.
=How about an organisation, 12,000 strong, springing up to defend their livelihoods? Dawn admitting to receipt of postcards, the PCG Gone Abroad survey, etc..
>Against this background, the Prime Minister shares your concern that any uncertainty surrounding the future of the legislation should be removed as quickly as possible, and hopes that this will be possible following the hearing of your application for Judicial Review.
=Or following Labour getting kicked out in the next election.
>Yours sincerely
=Likewise.