The coalition government has pledged to review a process that causes many headaches for IT contractors, it has been announced.

In the Programme For Government, which sets out the coalition's proposals for running the country, a full review of IR35 taxation legislation is promised.

The government said that the review will come as part of a wholesale review of small business taxation and the issue of tax avoidance.

"[We will] seek to replace it with simpler measures that prevent tax avoidance but do not place undue administrative burdens or uncertainty on the self-employed, or restrict labour market flexibility," the programme stated.

While this is good news for IT contractors, the freelancing association PCG will have expected nothing less from the new government.

In March, the Conservative Party had made a commitment to the PCG that it would undertake a review of IR35 in an attempt to make life easier for self-employed workers.