§ Mr. DrewTo ask the Chancellor of the Exchequer (1) if he will make a statement on how IR35 will affect training provision for IT contractors; and what new incentives are available to increase this training; [14855]
(2) what assessment he has made of the impact on IT contractors' training provision of (a) the introduction of IR35 and (b) the ending of individual learning accounts. [14854]
§ Dawn PrimaroloEmployees who pay for their own training are not in general entitled to a tax deduction for this expense. Individuals affected by the 'service company' legislation are in a similar position. However they are entitled to an additional 5 per cent. flat rate deduction for expenses on top of all the other expenses normally available to an employee, which they can use to provide for their training needs if they so wish. The withdrawal of individual learning accounts has had the same effect on all individuals previously eligible for them, and service company workers are not affected any differently from anybody else.