Business of the House

Part of the debate – in the House of Commons at 10:43 am on 31st January 2019.

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Photo of Alan Brown Alan Brown Shadow SNP Spokesperson (Transport), Shadow SNP Spokesperson (Energy) 10:43 am, 31st January 2019

The UK Government believe that there has been widespread abuse of the IR35 rules, even though only a minority of companies and individuals have ever been found to be in breach of the rules, and HMRC has lost cases against its own contractors. I have a constituent who operates as a self-employed IT consultant. Most of his work is in England, but under the new rules that the Government are introducing, any reimbursement that he gets for necessary flights and hotels will be treated as taxable income. This means that his business model will fail or that he will have to move from my constituency down to England. His overheads have already increased because of the additional insurance needed against any spurious HMRC investigations. Given that the Tories are supposed to be the party that protects entrepreneurs, can we have a Government statement or a debate—and possibly a rethink—on the impact of these rules changes?