Contractors plan Westminster demo against tax changes

Freelancers' representative the Professional Contractors' Group is calling contractors to a mass lobby of parliament, to protest against the government's determination to push through its IR35 tax change.

Shadow chancellor Francis Maude, along with shadow paymaster-general Quentin Davies, will address a meeting of contractors at 2.30pm next Wednesday, in Parliament's Jubilee Room.

Labour yesterday revealed that it is reintroducing the Welfare Reform and Pensions bill - IR35's parent - to the Commons next Wednesday, to undo changes made by the House of Lords two weeks ago. The peers' alterations included knocking out the clauses needed to alter freelancers' tax regime, costing many around one-quarter of their net incomes.

But peers opposing the IR35 clauses indicated they will not vote against the measure again if it is debated in the Commons, meaning that Wednesday's debate is likely to make the move's introduction next April a near-certainty.

The Group is asking contractors to write to their MPs this weekend, then visit them in person on Wednesday afternoon. Constituents can call to see their MPs through use of green request cards presented in Parliament's lobby.

Support from the Conservative party includes a briefing statement, accusing the government of saying one thing and doing another to entrepreneurs and imposing measures that will leave contractors uncertain over their fiscal status.

"IR35 is a stealth tax on the self-employed," it reads.

Director David Ramsden said he thinks hundreds of contractors will take the day off and visit Westminster. An email advertising the protest was sent yesterday evening to 10,000 addresses.

Ramsden said he was hopeful the government will make further alterations, as it has already adjusted its plans in favour of contractors.

"There's no doubt we have already secured concessions," said Ramsden, "There's still more that the government can do to make sure that our members will not be penalised."

The Inland Revenue released revised plans for IR35 in September, under which contractors were granted an extra five per cent tax allowance for business expenses. The government says its current plans aim to create equality between full-time staff and those working freelance through service companies, who it says enjoy lighter taxes.

Entrance to next Wednesday's parliamentary meeting will be limited to 100 contractors, and can booked on the Professional Contractors' Group website on Monday.