I was pleased to receive this message from Mark Prisk MP, Shadow Minister for Business.  It is welcome news for small businesses and self-employed people who have suffered under the current Labour government - which once promised to be the friend of business.

March 31st 2010

Dear Colleague

Conservative help for freelancers and the self employed

Over ten years ago Labour introduced the IR35 rules which affect over a million self employed people.  Whilst there were problems with tax evasion, Labour Ministers introduced the rules in such a clumsy way that they have affected tens of thousands of people who are acting perfectly reasonably.

The IR35 tax rules are part of a wider problem surrounding the taxation of small businesses by Labour. Ever since 1997, Gordon Brown has constantly tinkered with the tax treatment of the self employed, husband and wife businesses and other similar small enterprises. The result is the worst of worlds for the self employed: uncertainty, unnecessary risk and unfairness.

It is clear that simply scrapping IR35 would not resolve many of issues around the taxation of small businesses. Indeed it would, on its own, be the same piecemeal approach which has failed under Labour.

So instead a Conservative Government would undertake a fundamental review of small business taxation matters, including IR35. We would mandate the new Office of Tax Simplification to conduct this review, with the aim of creating a comprehensive and lasting regime.

Our aim would be to create a clearer, stable and lasting tax regime for the self employed and small businesses. This review is part of a wider Conservative aim to free enterprise and small business across the UK.

Yours ever

Mark Prisk MP
Shadow Minister for Business

P.S. Happy Easter to you all! 

In a Parliamentary debate, MPs called for restrictions on free local newspapers produced by local authorities at taxpayers' expense.  Greenwich Council distributes Greenwich Time, at a cost of over half a million pounds to local residents, and even claims it is an award winning publication - which is probably would be in any propaganda competition.  It is said that all content is 'checked' by the Council Leader Chris Roberts and it is virtually unheard of for anyone but Labour politicians to feature in print.  So I was delighted that the government is to refer the matter to independent investigation.  For too long this rag has been used to propagate Labour political spin while commercially run newspapers and magazines such as SE9, are struggling with falling advertising revenues and readership.  I am pleased that the Conservative Shadow Minister Caroline Spelman indicated her concern before Christmas on just this point.  I look forward to the end of this one sided insult to journalism and saving local taxpayers a significant sum of cash.

See the report in Newsshopper here

So the latest tax hike has become public - and it's a tax on the dead.  The government that ended the 10% tax band for the poorest in society now believes it is right to hike the interest payable on Inheritance Tax that can't be settled immediately after a person passes away.  Whereas at the moment virtually no tax is levied on unpaid estates, those families that have to sell the deceased person's home will have to add an additional 3% in interest until the debt is settled.

As someone who has been affected by this recently, when my grandmother died, I have enormous sympathy with the families facing this financial crisis.  With the housing market in a total slump at the moment, families are already losing out.  

Conservatives already plan to abolish Inheritance Tax for all except millionaires - and I personally hope the time will come when we can do away with this deeply unfair tax altogether.  After all, if someone takes care to invest or save their taxed income during their lifetime, it is right that they should be able to pass that wealth down to family and friends.  
 

"Do you know, yesterday brought on such a sadness in me. For the first time that I can remember, I started really wondering, 'is there any reason to be in this country anymore?'. I feel that angry/depressed/upset with their dogged determination to disincentivise anyone to do anything"...and there will be a genuine drain on talent in this country.  This is a direct quote from a very good friend who gets paid well for what they do but works very hard.  They may or may not be in the new 50p tax band, I don't know and would never ask, but it is a common complaint about this government.  Whether rich or poor, everyone will pay more as a result of yesterday's Budget. Perhaps if Mr Brown really believes it was such a good Budget, he should put it to the ultimate test and call an election.