Engagement boost for freelancersFreelance workers could see an increase in employee benefits through the abolition of the IR35 tax on freelance earnings, it has been claimed.

John Brazier, managing director of PCG, said chancellor George Osborne’s proposed review on the IR35 legislation as part of last week’s emergency Budget is a step in the right direction to removing a tax that has blighted the freelance sector for more than ten years.

He commented: "More and more people see the potential of freelancing as a positive and rewarding choice for their work while enhancing their lifestyle. We are delighted that at last we seem to have a government that appreciates this."

In addition, Mr Osborne proposed a review of the small business tax and in response, the Federation of Small Businesses stated that the need to pay national insurance contributions should be negated for existing firms in addition to start-ups.

It added that this would go a long way towards encouraging smaller firms to invest and grow.