Why Current Tax Laws Are Penalising Forward Thinking Contractors
Every incentive should be put forward in order to ensure that the contractor is more valuable in his or her particular field.
When it comes to equal treatment under taxation laws, it seems that independent contractors arenít being handled fairly. The lot of the contractor has been much in the news recently due to their inability to access the type of competitive mortgage products seen in the general marketplace. As some contractors are increasingly finding that they need to declare personal bankruptcy due to such inflexibility from the banks, we see that theyíre also being treated unfairly when it comes to taxation laws.
Professional Representation Network feels itís necessary to draw attention to outdated tax laws that effectively penalise contractors should they wish to educate and train themselves within this field. While itís certainly possible to claim training as a business expense if the contractor is updating existing skills, for some strange reason this type of business expense cannot be claimed if the contractor is adding a new skill.
If an IT manager wants to take an advanced business course in order to provide better advice to IT start-ups then, inexplicably, this cannot be claimed as a business expense on the tax return. To all intents and purposes there is a disincentive for them to take the educational course, especially if we look at this in the light of tough economic conditions.
The UK government is well aware how important the independent contractor sector is to the strength of the countryís economy. Every incentive should be put forward in order to ensure that the contractor is more valuable in his or her particular field. Every effort should also be made to help these contractors advance as the country emerges from recession. With bank and regulator pressure against them, seemingly, itís hardly fair for tax rules to be pitched against them as well.
Professional Representation Network calls for changes to be made in the budget, so that this strange tax loophole is removed as soon as possible. Until then contractors may be forced into the unpalatable position of maintaining their status quo, rather than going for the educational training. While they may well feel itís in their interest to take the training for career enhancement, in tough financial circumstances it could be the tax restriction that causes them to stand down.
The Professional Representation Network is a complete contracting provider, providing a variety of services to contractors from varying industries around the world. They identify opportunities, negotiate contracts and provide support to contractors at every stage of the relationship. Relying on 40 years of experience in consulting and representation and access to an established network, Professional Representation Network brings passion to help develop a contractorís professional life.
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