PCG has made a formal written submission to the Chancellor of the Exchequer, Alistair Darling, ahead of this year's Pre-Budget Report.

In the submission, PCG Chairman Chris Bryce sets out a number of issues affecting freelancers and contractors for the Chancellor's consideration. Mr Bryce points out the urgent need to repeal IR35 and to drop proposals for "Income Shifting" legislation. The need to re-examine sections 44-47 of the Income Tax (Earnings and Pensions) Act 2003, which effectively force a contractor to incorporate, is also covered.The submission provides a useful opportunity to maintain PCG's profile within HM Treasury, and keeps core issues on the Government's radar.

The Pre-Budget report, which typically takes place in mid to late November, is the Government's opportunity to outline its future economic plans. It provides a valuable glimpse into the likely direction of the full Budget, as well as a chance for the Government to re-assess its economic forecasts. In recent years it has become increasingly important as the policies announced have become more substantial and more detailed, leading to it often being called a "mini budget". Last year, for example, the Family Business Tax ("Income Shifting") proposals were effectively shelved, however they were not fully dropped. 

The most likely date for this year's Pre-Budget Report is the 25th November, however it could occur as late as the 2nd December. As in previous years, PCG will be bringing you a full update and analysis of the Report as soon as possible after the Chancellor's announcement.

Click here to read PCG's submission to the Chancellor