Government 'must address tax concerns of contractors'

Government 'must address tax concerns of contractors'
The government must address the concerns of contractors and other small businesses about bookkeeping and HMRC, one expert has claimed.

National chairman of the Federation of Small Businesses John Walker said the government must support the self-employed and encourage people to become contractors through the tax system.

"All businesses should pay the correct taxation, but HMRC should understand that small businesses do not have finance departments and occasional errors will occur – this is due to the vast taxation book the UK holds," he added.

This comes after Gerry McLaughlin of ITContractor.com argued that the IR35 tax rules are "complex and ill-defined", no doubt echoing the thoughts of many contractors.

He claimed that instead of "using a laser gun" to focus on the problems, the government effectively just "threw a nail bomb".

Mr McLaughlin said the government wanted to ensure that disguised employees were fully taxed and unable to make the most of benefits that other businesses can use.
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