Government defeated over IR35 review

A proposed amendment to the law, which the government claims closes a tax loophole used by contractors to avoid some tax and national insurance payments, has provoked uproar in the IT community.

This morning's decision, made by a High Court judge, is a major victory for the PCG.

Speaking after the hearing, a PCG spokeswoman said: "We are very pleased as we have always said the law was unfair. Now we are on the road to proving that the amendment is illegal. The judge has agreed with our request for a review of the law, with the Inland Revenue having put forward their argument."

The full hearing will begin early next year.