Simplification of the IR35 taxation system will allow IT contractors and other freelance workers to prosper, an expert suggests.

Speaking to Enterprise Nation, small business minister Mark Prisk said that harnessing the skills of self-employed workers will form an essential part of the UK's emergence from recession and fiscal debt.

The new Conservative-Liberal Democrat coalition promised a review of IR35 legislation in their Programme for Government - a promise repeated by chancellor George Osborne as the emergency Budget was announced.

Mr Prisk told Enterprise Nation that changes would be made "to try to deliver a more predictable and simpler system so that it doesn't weigh on the shoulders of sole traders".

He believes that with economic conditions for many companies remaining difficult, freelancers such as IT contractors may be more in-demand as employers look for alternatives to the traditional employment contract.

Additionally, he urged freelancers to consider the hiring of an accountant to ensure that all payments, receipts and invoices are kept in order in the changing tax landscape.