Confidence among freelancers is falling rapidly highlighting the need to end punitive tax measures on them, a new survey by the Professional Contractors Group (PCG) has revealed.

The PCG's annual membership survey, an index of business confidence on numerous key measures, including the overall economic climate and new business opportunities, reveals that confidence has fallen sharply for the year 2008-9.

The survey also shows that 65% of freelancers identified IR35, a law that tries to
tax freelancers like employees and has made it harder for them to self-assess their tax bills, as a problem, while 40% saw it as their top problem.

Commenting on the research, John Brazier managing director of PCG,  said: "These results show a significant drop in freelancers¹ confidence about the economic outlook. If it is as serious about assisting small businesses as it claims to be, the Government must act now by abolishing IR35 and giving a firm commitment not to press ahead with its disastrous plans for a Family Business Tax."