When the chancellor presented his budget, he made no mention of IR35 and in fact it was seen as a rather "tongue in cheek" gesture by those in the battle against IR35.
The P.C.G.expressed dissapointment that the chancellor had not taken this final opportunity to repeal the so-called "stealth tax", IR35 that they had been so critisised for over the past 2 yrs.
The confusion surrounding IR3535 was in no way alleviated by the budget ,and as this was the last chance to have the law repealed it will have to be left until the judicial review has come to a decision. The juduicial review takes place from 13-15 march at the high court in london.
The only thing the chancellor did mention was that the finance bill would hold some information for the entrepeneur but first of all it would have to be seen which finance bill?
and you would probably get information quicker from the judicial review.
V.A.T
There was not much change here either except for an increase in the outdated cost limit on free gifts from £15 to £50, therefore an increase of 333%. The V.A.T threshold was also increased for small buisnesses, this news receieved a luke warm welcome from all concerned.
The new threshold is £54000, which is up on last years figure by £2000 and above the rate of inflation.
The chancellor also touched on corporation tax and it seems he realised that he had angered the multi-national corporations last year and he therefore emphasised his desire to consult further about his plans to limit tax relief to multinationals.