IPSE, the Association of Independent Professionals and the Self-Employed has offered its reaction to the Chancellor’s Summer Budget.
IPSE CEO, Chris Bryce, said:
“Reducing the UK’s budget deficit through a low tax agenda is the right way forward, however IPSE is concerned that legitimate businesses may be unfairly targeted by the Chancellor’s efforts to tackle tax avoidance.”
Chris Bryce continues:
On tax avoidance
“The Chancellor is absolutely right to target aggressive tax avoidance and evasion. However, focusing on personal services companies risks many self-employed people being unfairly hit if they are confused with people abusing the system.
“The Government’s consultation provides an opportunity to separate the abusers from legitimate small businesses and we will engage robustly with Government to ensure freelancers and contractors are not unfairly targeted.”
“We need a simple tax system, so people working for themselves can understand their obligations and pay what is owed. Lowering Corporation Tax moves this agenda on and we look forward to further progress being made in this area.
“The Chancellor said 85% of those who receive dividends will see no change or will be better off. IPSE will carefully examine this and advise our members on how they will be impacted. Amending Class 4 NICs was expected and IPSE will monitor their impact on freelancers and the wider self-employed community.”
“If you’re a freelancer that can mean a lot of travel to meet clients in different parts of the UK. Continuing the freeze on the fuel duty escalator will help to keep these costs in check. However, those who need to purchase a car may be put off from buying a new model due to the extra costs involved.”
“As it stands the UK’s economic performance is too reliant on London and the South East so the ambition to grow a Northern Powerhouse is the right one. To remain competitive in the global economy, we need to have a world class infrastructure in place. This is not only improving transport links but ensuring the entire population has up to scratch digital connectivity.”