While the self-employed sector believes they are finally starting to be listened to by the government, last week’s Spring Budget missed a few important issues.
That’s according to the IPSE (the Association of Independent Professionals and the Self-Employed), which has concerns about the fact that issues such as IR35 and the growing costs of Making Tax Digital (MTD) were not mentioned.
Commenting on this, Andy Chamberlain, Director of Policy at IPSE, said, “Today’s Budget was an encouraging sign that the Chancellor is beginning to listen to the self-employed. But despite the welcome cut to National Insurance and the raising of the VAT threshold, the measures failed to address the substantive issues holding the self-employed back, from IR35 to the looming cost of Making Tax Digital.
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“It’s positive that the Chancellor has heeded IPSE’s call to raise the VAT registration threshold. This increase, whilst modest, will alleviate a barrier to the growth of our smallest businesses and it is encouraging to see the Chancellor recognise that in today’s Budget.
“And while the cut to National Insurance will be welcomed by the UK’s 4.2 million self-employed, any benefit may well be undermined by frozen thresholds and continued inflation.
“The self-employed make an enormous contribution to our economy and society, but it could be even greater if the government were to grasp the nettle of IR35 and address the forthcoming impact of Making Tax Digital for Self Assessment.”
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