There is now growing pressure on the Treasury to backpedal on its controversial plans to ramp up tax on family firms in the recently announced income shifting proposals.

The government has projected that it will get £350million from this measure,” said Chas Roy Chowdhury, head of tax at the Association of Certified Chartered Accountants.

This profit driven initiative by the government, we believe will create more of a burden for family run business that it’s actually worth.

Reports in the Mail on Sunday and other publications suggest that the Chancellor is planning to take the sting out of his earlier plans to clamp down on husband and wife businesses, which is good news for thousands around the UK.

To quote from the mail on Sunday: "Sources close to talks involving the Treasury, business groups and the accounting profession say a rethink on 'income shifting' seems likely to form the centerpiece of a package of measures friendly to small business."

Whilst these proposals do not affect contractors who work through an Umbrella company, it will hit many others who choose to run their own Limited company and employ family members.