PCG - the organization representing individual freelancers, contractors and consultants - has welcomed the clearest statement yet from the UK's Coalition Government that IR35, which affects the way such people are taxed, is to be abolished. 

They have been encouraged by an article for The Telegraph (Today, 23 June) in which Mark Prisk, small business minister, says:

‘Individuals selling their services through small companies have their taxable income policed by the so-called IR35 legislation.

This could now be abolished. 

He says. 'We want to make sure that we undertake a comprehensive review of small business taxation in a way that makes the need for the current IR35 legislation redundant.

'But we want to make sure whatever we change is a lasting settlement. One of the problems with IR35 is that it's a constantly changing set of rules.'