IPSE urges government to reconsider tax raising policies – starting with IR35 private sector reform

(2 minutes to read)

Following research that claims UK taxpayers are being burdened with higher bills at any time in the last 50 years, the IPSE has urged government to review tax raising policies ASAP.

A recent report from the TaxPayers’ Alliance has revealed that the tax burden (the amount of tax paid to the Treasury as a proportion of total annual income) this year is at a 49-year high, at 34% of GDP.

Responding to these figures, the Association of Independent Professionals and the Self-Employed (IPSE) have said that the government needs to reassess tax raising policies immediately – starting with putting an end to the proposal to extend last year’s IR35 reforms to the private sector.

IPSE’s Director of Policy, Simon McVicker, commented on these latest findings, “The self-employed have had more than their fair share of tax hikes under this Government. The cut to the dividend taxable allowance has meant a significant real term increase in the tax bills of many independent professionals.

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“Worse still, last year’s IR35 reforms have resulted in thousands of public sector freelancers being wrongly taxed as if they were employees while receiving none of the employment rights. Now the Government wants to extend that same change to the private sector, a change that threatens to strangle the UK’s greatest competitive advantage – it’s flexible labour market. People don’t mind paying taxes if they are fair and transparent – the problem with IR35 is that it is anything but fair.

“The Government’s zeal for raising tax, as highlighted by the TaxPayers’ Alliance, seems to have taken precedence over traditional Conservative principles of driving economic growth by allowing people to keep more of the money they earn.

“Everyone understands that we need to fund our public services, but the Government is in danger of killing the goose which lays the golden egg, namely the UK’s 4.8 million self-employed who enable innovation by providing flexible expertise to businesses which are looking to grow.”

To find out more about contracting please contact Sophie on 01442 795 100 or email sophie.lewis@dolanaccountancy.com

Why Dolan Accountancy?

Dolan Accountancy was set up by Simon J Dolan, the man behind the well-known brand SJD Accountancy. With over 25 years experience in the contracting marketing, Dolan Accountancy has the heritage, reputation and credibility you can trust. Working closely with our sister company, Contractor Umbrella, it means we can offer one low cost, fixed fee package at £95 + VAT per month. This gives you the flexibility of using both our Limited Company Accountancy Services and our award winning Umbrella Service, for one inclusive cost. We don’t believe in tiered packages or hidden extra fees, instead we aim to give you everything you need, including:

  • Free Company Formation – This is where it all begins. Once you have decided on an available name, we will form your company free of charge (if using our accountancy services) and it will be ready for you to use in as little as three hours.
  • Free use of Contractor Umbrella – With changes in Public Sector IR35 Legislation we understand that sometimes you are required to contract via an umbrella company. We will keep your limited company ticking over, while you work margin free via our sister company, Contractor Umbrella.
  • A Dedicated Accountant – Your accountant will be there for any company or personal tax advice that you require. We will never outsource work, even to internal teams.
  • Free Access to FreeAgent – The founder behind the multi award winning FreeAgent platform was one of Simon’s first clients, therefore it only seems fitting that we offer all of our clients access to FreeAgent, free of charge.
  • Free Business Banking – We have decided to waive our commission so our clients can use Tide free of charge for the first year.
  • Unlimited IR35 Status Reviews – We will review all of your contracts for IR35 purposes and provide you with our professional opinion as to its status.
  • Free Registered and Director’s Service Office Address – Sometimes you just don’t want your home address on display at Companies House. When you sign up to our accountancy services, we will offer the use of our address as an alternative.
  • Your Business and Personal Taxation Needs – This includes Company Accounts, Director’s Personal Tax Return, VAT Returns, Payroll, Corporation Tax and Dividend advice, to name just a few.
  • Same day payments- We offer same day payments as standard providing funds are received into our account by 9am, for no additional fee.

If you’d like to find out more about how Dolan Accountancy can help you and your business, please give us a call on 01442 795100 or email sophie.lewis@dolanaccountancy.com or jaime.thorpe@dolanaccountancy.com.