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UK Independence Party MEP speaks out over Inland Revenue rules

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UK Independence Party MEP speaks out over Inland Revenue rules
UKIP MEP Godfrey Bloom has criticised the government for allowing backdoor discrimination.

An unintended consequence of Section 12 of the Finance Act 2000 (known as IR35) is that freelance workers are subject to discrimination because they are classed as ‘disguised employees’ of their client for taxation purposes. They must pay full employment taxes and although many are limited companies, they are denied the right to pay themselves dividends.

As freelance workers they receive no holiday pay and have no job security or employment rights.

Godfrey Bloom said, “There are many ways of making the system fair. We could allow the payment of dividends, or freelance workers could be taxed in the same way as the self-employed. Could the government simply fear a loss of tax revenue if they remove this barrier from an important section of the UK workforce, or is it, as always with Gordon Brown, about control?”

The UK Independence Party believes that IR35 should be abolished.

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