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CUK forum members have uncovered an apparent Conservative policy to refuse to back a parliamentary motion calling for the repeal of the controversial IR35 tax rule. Two posters – DiscoStu and Ardesco – have reported receiving the same stock email in response to a request for their MP to sign the motion. DiscoStu’s reply was written on the MP’s behalf by his researcher, whilst Ardesco’s was written in the first person. The message discusses IR35 in some detail, but explains why the MP “feels unable” to back the motion to repeal the rule. The motion, lodged in March by Liberal Democrat MP Lorely Burt in March, has been signed by 85 MPs so far. Perhaps unsurprisingly, the list of signatories is dominated by Ms Burt’s Lib Dem colleagues – including Lib Dem Treasury spokesman Vince Cable – but it also has the backing of Conservative backbencher Ann Widdecombe, former Labour minister Glenda Jackson and SNP Westminster leader Angus Robertson. The stock email, which refers specifically to Ms Burt’s early day motion, assures the correspondent that their MP “has made the Shadow Business team aware of your concerns, and… assure you that [they] will continue to review the IR35 provisions.” But crucially, it also states: “Conservatives are concerned about the intentions behind IR35, but we must think carefully about how to resolve this complicated issue. It is not as simple as just abolishing the provisions altogether. It is on this basis that [the MP] cannot sign the motion.” The only concession to the failings of IR35 is an acknowledgement that it is an “overly-complex tax mechanism”. A report two years ago by Conservative MP John Redwood for the party’s leadership recommended a policy of scrapping IR35, but the message suggests the party has no intention of following Redwood’s recommendation. Ms Burt’s motion “notes with concern the 10 year anniversary of the Government's implementation of IR35; further notes that the 1.4 million freelancers in the United Kingdom face a perpetual threat of a costly and distressing HM Revenue and Customs investigation under IR35; further notes that IR35 obliges freelancers to spend time and money assessing their status as best they can, with contract reviews, tax investigation insurances and negotiations with clients and agencies, and that this effort would be better spent generating wealth for the UK economy… further notes that there is no evidence that IR35 is raising any money for the Exchequer; and calls on the Treasury, in light of the current economic difficulties, to remove unnecessary barriers to enterprise and to abolish IR35 at the earliest opportunity.” Lorely Burt MP said at the time of the motion was raised: “[Professional Contractors’ Group] has made me aware that of the 1,468 IR35 cases known to them, 1,462 have resulted in no extra tax being owed and there is no evidence that the tax is raising any money for the Exchequer. In light of the current economic difficulties, I support PCG and its members and have raised this EDM to press the Government to abolish IR35 at the earliest opportunity to give freelancers a fair chance.” John Brazier, managing director of PCG, added: "I would urge more MPs across all parties to support the Motion to send a clear signal to Government that it must act now, acknowledge just how damaging IR35 is to freelancers and the UK economy and abolish it." At the time of writing, the signatures broke down as follows: Conservative: 22 signatures Independent: 2 signatures Labour: 10 signatures Lib Dems: 48 signatures Plaid Cymru: 1 signature SNP: 1 signature SDLP: 2 signatures The motion can be found here. Graham Taylor Jun 5, 2009 Email this article Printer friendly page Previous Page
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