Self-employed hit hard by Budget tax rises
The self-employed were the biggest losers in Chancellor Philip Hammond’s Budget, according to IPSE, the biggest organisation representing the UK’s 4.8m self-employed and professional freelancers and contractors.
The Chancellor announced a 2p increase for self-employed National Insurance Contributions (NIC’s) and reduced the allowance for Dividend Tax from £5,000 to £2,000.
IPSE is concerned that these punitive measures will have a severely detrimental effect on the self-employed workforce.
Chris Bryce, IPSE Chief Executive, commented: “If you are one of the hardworking self-employed people who face a significant increase on your tax bill, you might feel that the Chancellor has it in for you.
“When you look at the additional support offered for business rates it appears as if the Chancellor is supporting SMEs by hitting entrepreneurs and the smallest of businesses.
“Adding in the reduction in Dividend Tax allowance, whether you work as a sole trader or through a limited company you will be facing higher bills. The Chancellor shouldn’t forget that growth in self-employment has driven our labour market in recent years and punitive rises in tax will make many people have second thoughts about striking out on their own.
“It’s entirely right for the Chancellor to look at taxation of the self-employed, but changes should only come after a thorough consultation with the business community, which has not taken place.”
Finance, Tax, Policy, Employment, HMRC, IPSE News