Pre Budget Press Release
Chancellor urged to back smallest businesses in Budget
The UK’s 4.6 million self-employed workers need Budget commitments to fair maternity pay, simpler taxation and more accessible training opportunities, according to representative body IPSE, the Association of Independent Professionals and the Self Employed.
IPSE CEO Chris Bryce said: “It’s essential the Chancellor uses the Budget to bring forward the recommendations of the Government-commissioned Self Employment Review. This group makes an indispensable contribution to the UK economy, and with record numbers of people working this way, it’s a group that cannot be overlooked.
On taxation for the self-employed
“The current tax system is complex, time-consuming and burdensome for the smallest businesses, particularly with the IR35 tax affecting many freelancers. The recent Office of Tax Simplification report on small business taxation rightly highlighted the need to make tax simpler for small businesses. It recognised the Freelancer Limited Company (FLC) – a concept developed by IPSE – as an idea ‘worth considering further’ to give freelancers more certainty around employment status.
“IPSE has written to the Chancellor urging the Government to take this proposal forward.
“The Chancellor promised in a recent speech to ensure the ‘Making Tax Digital’ scheme will not add to the administrative burden for the smallest businesses. He needs to keep this promise. Doing your taxes needs to be made as simple as possible so the self-employed can spend more time working and less time dealing with admin.
On maternity pay
“There are now 270,000 freelancing mums – 100,000 more than in 2008. The Chancellor needs to act on the Self Employment Review’s recommendation to level the playing field, and make sure the self-employed get the same maternity pay as employees. New mums should never be held back from going freelance – particularly as it can provide a much better work-life balance than employment.
On training for the self-employed
“Access to development opportunities is key for the self-employed to do business. Employees currently receive tax-deductible rates on all training, but the deductions only apply to the self-employed if the training is deemed to be a ‘core’ skill. This means, for example, that a self-employed plumber pays a disproportionately high amount for training in company branding or self-marketing. The Chancellor should use the Budget as an opportunity to make this training more affordable by making training tax-free for employees and the self-employed alike.”
NOTES TO EDITOR
IPSE, the Association of Independent Professionals and the Self Employed, is the representative body for the UK’s self-employed community, including freelancers, contractors, consultants and independent professionals.
IPSE was formerly PCG (Professional Contractors Group) and changed to IPSE in September 2014 to encompass all self-employed professionals. Ipse is also the Latin word meaning ‘self’ and is pronounced ‘ipp-say’.
Press and PR Officer
IPSE - the association of Independent Professionals and the Self Employed
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