The Scottish National Party’s Roger Mullins MP has tabled an amendment to the Finance Bill, which would ensure that the Chancellor George Osborne reviews the income tax system for contractors.

For some, contractor tax payments are now higher as a result of the reduction in travel and subsistence relief for workers caught by the IR35 legislation. This legislation aims to ensure that contractors who are actually working the same way as employees within a company are taxed in the same way as employees.

The SNP has condemned these new caps on contractor tax relief and Mullins now hopes to limit their impact further. Mullins' amendment reads: “The Chancellor of the Exchequer must conduct a strategic review of the impact on workers defined as providing services through intermediaries of their treatment for income tax purposes, including the differential impact on different types of worker, and must publish the report of the review within six months of the passing of this Act.”

Mullins' amendment comes off the back of his meetings with employment intermediary trade body Prism. The organisation predicts that the travel and subsistence changes could affect 1.6 million contractors, reducing their income by 20 per cent.

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