Freelancers' relief over Family Business Tax reprieve Family businesses have been given a temporary reprieve from the chancellor's planned Family Business Tax ("income shifting"), which he announced in the Budget will be delayed until 2009. The Professional Contractors Group (PCG), which represents the UK's freelancers, is pleased that Mr Darling has listened to the extensive and detailed response to the proposals submitted by the PCG.
PCG's managing director John Brazier said: "We are glad that Mr Darling has taken notice of not just the experts but the thousands of people who signed the petition on the 10 Downing Street website, the MPs who signed the Early Day Motion against the proposals and others. There has been a clear consensus that the FBT proposals would not have worked. We hope the next phase of consultation will result in a sensible outcome."
PCG has pledged to provide full input into the next phase of consultation, saying "We will hold the Chancellor to what he promised today: a 'stable business tax regime that is responsive to business needs'," concluded Mr Brazier. "We are glad that there is now an opportunity to persuade the Government to reconsider fully." PCG would like to thank everyone who has responded to this campaign by contacting their MPs and signing the e-petition, it is good to know that the hard work from everyone involved has paid off. We look forward to further sensible thinking and simplification of the tax burden on both business and individuals. CLICK HERE TO JOIN THE PCG NOW AND HELP DEFEND THE FREELANCE COMMUNITY FROM THIS AND ANY FUTURE ATTACKS ********************************************************************************************* Budget Update: - Corporation tax will fall from 30% to 28% by April this year
- Mr Darling said there will be simpler taxes for small companies
- Funds available through the small firms loans guarantee will increase by 60% in the next year
- There will be a capital fund of £12.5m to encourage more women entrepreneurs.
- INCOME SHIFTING DELAYED UNTIL 2009:
The Government firmly believes it is unfair that some individuals can arrange their affairs to gain a tax advantage by shifting part of their income to another person who is subject to a lower rate of tax.
The Government has considered the responses received to the recent consultation and believes that a further period of consultation will ensure that legislation in this area provides clarity and certainty for businesses and their advisers.
The Government now intends to introduce legislation through Finance Bill 2009 and will not enact legislation effective from 6 April 2008. PCG congratulates Mr Darling on seeing sense over this ill thought-out proposal Campaign Adverts:Look out for a national advertising campaign by the PCG on the Family Business Tax. This takes the form of an open letter to Alistair Darling and will be appearing in most national newspapers starting on the 9th March. You can see the first advert on PCG's website by clicking here Latest: The Early Day Motion now has a very healthy 172 signatures from all parties, and the e-Petition now has 7,238 signatures, putting it in the top 25 petitions. Only a few hundred more would put us in the top 20. If you haven't already signed...
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