By Tony Hallett, 29 October 1999 17:30
NEWS The UK government is set to cast aside a recent ruling by the House of Lords and push through its controversial IR35 tax clause in the Welfare Reforms and Pensions Bill. Silicon.com has learnt the government will next Wednesday introduce a guillotine motion to prevent full and proper debate in the Commons. IR35 is meant to do away with loopholes in the law which some people maintain give one-person service companies unfair tax breaks. However, many IT contractors and insist the move flies in the face of government support for a 'knowledge economy', because the move could encourage skilled IT professionals to leave the country or set up offshore accounts. Iain Sutherland, director of the 3 sixty group, said: "This is the same way the Conservatives pushed through the Poll Tax. We'll be campaigning at Parliament next week with front bench opposition members and captains of industry." Sutherland pointed out that the government's own latest regulatory impact assessment document, put together by the Treasury and Inland Revenue, also said the UK should "expect some loss of international competitiveness" because of the effects of IR35. However, a spokeswoman for the DSS, which is now handling the passage of the Bill, said the timetabling next Wednesday is "by no means unusual", pointing out that during earlier sessions time-consuming filibustering tactics were used. The 3 sixty group will be joined by Shadow Chancellor Francis Maude and Quentin Davies, the Shadow Paymaster General. The company can be contacted by those interested in opposing IR35 by emailing i.sutherland@360-group.com.
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