Freelancer.co.uk warns Office of Tax Simplification not to give into political pressure

by GavinWard on February 23, 2012

Freelancer.co.uk warns Office of Tax Simplification not to give into political pressure and tighten regulations that could harm an expanding sector

LONDON: Ministers and MPs should stop harassing genuine freelance contractors in their bid to stop employees being paid as private companies, warns Freelancer.co.uk, the world’s largest outsourcing and crowdsourcing marketplace with more than 3.2 million users.

The call follows on from freelancer groups meeting with officials at Revenue and Customs earlier this week to review the IR35 laws  preventing full-time workers paying themselves through companies. Freelancer.co.uk has warned the Office of Tax Simplification (OTS) not to give in to political pressure to tighten regulations that could seriously harm an expanding and innovative sector.

“There is a real fear that the OTS under political pressure will make a complicated system worse. Freelancers and sole traders are the lifeblood of the economy, able to adapt quickly and innovate. The last thing they need in a difficult economic climate is another layer of bureaucracy, said Matt Barrie, CEO of Freelancer.co.uk.

“If the Government continues to criticize and legislate against genuine contractors and freelancers, they will choke off one of the few expanding sectors in the economy.

“The UK should be embracing, not stifling the entrepreneurial flair and talent that comes hand in hand with running a small business. Freelance work has proven to be a successful business strategy, particularly for SMEs.

“In a global marketplace, businesses need global solutions. SMEs cannot afford to be disadvantaged in the UK, which will only stifle their ability to compete on a larger scale.

 “Instead of painting SMEs with the same brush, the UK Government should be trying to ease regulatory and tax constraints on small businesses that are already suffering in a harsh economic environment”.

For further information, interviews and case studies, please contact:

 Bill Little
bill@unlimitedcomms.com
m: +44 (0) 79 4092 4555

Editors’ notes

 Webby award-winning Freelancer.co.uk is the largest outsourcing marketplace in the world. Through Freelancer.co.uk, businesses connect with independent service providers and freelancers. Freelancer.co.uk connects more than three millions professionals from all over the world. Through our website, employers can hire freelancers to do work in areas such as software, writing, data entry and design right through to engineering and the sciences, sales & marketing and accounting & legal services. Jobs start at £20, and the average job is under £150, making Freelancer.co.uk extremely cost effective for small businesses and entrepreneurs, which often need a wide variety of jobs to be done, but cannot justify the expense of hiring full time.

  • John

    This is ridiculous really, there is no way the Tax Office can stop freelancers, they are the biggest workforce in the World right now!

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