Small businesses and freelancers have expressed grave concern about plans to allow government inspectors powers of entry into company directors� homes without a search warrant.

The Company Law Bill would allow DTI officials access to the homes of limited company directors if they �think� a visit will aid their investigation. Instead of a warrant, inspectors will be able to rely on a signature from Patricia Hewitt, the Trade and Industry Secretary. Inspectors will be allowed to stay as long as they like in someone�s home to secure material relating to self-employment or employment.

Dr Simon Juden, chairman of the Professional Contractors Group (PCG) said, �As currently drafted, this plan appears open to abuse. Of course, dishonesty and illegal practices need to be investigated but the idea that inspectors need nothing stronger than to �think� someone�s doing something wrong is ridiculous. Surely they must demonstrate good reason before they go marching into people�s homes.�

Dr Juden said, �We would like some assurances that requests for these search permits will be subjected to the closest scrutiny. It is extremely worrying that such powers could be authorised not by a court or a judge but by a civil servant or political appointee � and this isn�t just about the business and freelance community; there�s a fundamental issue of civil liberties that affects all of us. It�s ironic that following publication of their expenses, MPs say they should be treated as small businesses, while genuine small businesses face confusion and inconsistency in tax policy and now the prospect of government inspectors searching their homes on a little more than a whim.�

PCG will be writing to Patricia Hewitt to express its concerns about the proposed measure.