Calls to delay NI and dividend tax hike

With energy bills set to spike, the IPSE is calling for the government to delay the planned increases to both National Insurance and dividend tax.

Set to come into effect in April, the Association of Independent Professionals and the Self-Employed (IPSE) say that the sector is already struggling thanks to soaring household energy bills, inflation and the impact of recent tax changes.

Andy Chamberlain, Director of Policy at IPSE, said, “With the average household bill set to rise by 54% from April, we at IPSE believe that now is not the time to increase taxes on thousands of self-employed workers. The energy crisis is likely to hit freelancers especially as they typically work from home and therefore use more energy to heat their homes than office-based workers.

“Working for yourself is already challenging. Any additional costs could severely damage the sector’s ability to recover. While self-employment was one of the most dynamic parts of the economy pre-COVID, the sudden loss of work during the lockdowns has scarred the sector and made it more difficult for contractors to make a living.

“The rise in National Insurance is particularly damaging to those that work at an umbrella company, as self-employed workers are forced to pay the tax twice – as an employer and as an employee. We hope that any delay to the planned increase in National Insurance will give HMRC and the Treasury time to solve this pressing issue.”

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