The Liberal / Conservative coalition have published a joint programme for government, including a review of IR35.

Here are some key points from a business / tax perspective:

General Tax proposals:

~ The personal allowance threshold will go up to £10,000 in due course. This will be funded by money that would have been used to pay for the increase in employee NI thresholds, as well as revenues from increases in CGT rates for non business assets.

~ The increase in employer NI thresholds proposed by the Conservatives will go ahead.

~ Non business CGT rates will be matched to those applied to income, with exemptions for entrepreneurial business activities.

~ Non dom tax rules will be reviewed.

~ Air travel will be taxed per plane instead of per passenger.

~ Tax avoidance reforms.

~ Green taxes to go up (no detail as yet).

Main business measures:

~ ‘One in, one out’ rule to be introduced for new regulation to cut red tape.

~ New ‘sunset clauses’ imposed on regulations to ensure the need for each regulation is regularly reviewed.

~ Small business rate relief to be automated.

~ Corporation tax headline rates to be reduced.

~ General public to be given the opportunity to challenge regulations.

Theres a promise to review IR35 as part of a “part of a wholesale review of small business taxation”. The plan is to replace IR5 with “simpler measures that prevent tax avoidance but do not place undue administrative burdens or uncertainty on the self-employed, or restrict labour market flexibility”