But complaints have poured in from all sides, saying the proposals are badly thought-out and if implemented would have a detrimental effect on most employers, and serious consequences for many businesses in the IT and construction sectors. As Paymaster General is responsible for the tax changes John Whiting, tax specialist at Pricewaterhouse Coopers, has been following closely the representations made to the minister responsible, the Paymaster General, Dawn Primarolo, which include a joint attack from the Chartered Institute of Taxation, the Institute of Chartered Accountants and the Law Society. But so far we don't know the shape of it. The Chancellor has claimed that workers are being forced out of employment, losing their employment rights and pensions benefits, but critics say he is proposing to use a sledgehammer to crack a nut. There are many reasons why someone might form their own company.
Many small businesses start as one person and go on to become thriving employers.
Significantly, operating as a personal service company gives them flexibility, and a healthy economy needs a flexible workforce. Tax experts have said the proposals could mean thousands more workers would be affected by employee-related legislation such as the working time rules. They say this could have a beneficial effect on the lifestyles of some of them, but at a huge cost to the employers. Deadline approaching Opponents to the scheme are worried that, until now, there has been too little consultation, while the government intends to make its proposals law in April next year. He said the Treasury was expected to issue a consultation document within the next few days.