Self-employed workers have had to deal with many changes during this pandemic and more changes are due in the coming months. In light of this, backinbusiness.org.uk wrote to Rishi Sunak and described costed policies that would “rebuild small businesses and the self-employed sector to secure our economic future”.
On top of that, they are also urging the government as a whole to indicate where they see new jobs and businesses growing in the UK.
Liz concluded with the following: “We strongly believe that full consideration of these recommendations will demonstrate that the government recognizes the invaluable contribution of the business community we represent and will ensure that the budget is a roadmap for growth. small business, our economic recovery and the completion of the leveling up agenda.
As it stands, the rules for unpaid work (IR35) will be amended from April 6, which means that companies in the public and private sectors will be responsible for deciding the employment status and tax provisions of their workers.
Additionally, Bounce Back loan repayments will begin to fall due after the first 12 months of payment, which could start to affect first-time applicants from May 2021.
The organization backinbusiness.org.uk is also not the only organization to have called on the state to extend the support of SEISS, the Association of Independent Professionals and Self-Employed Workers (IPSE) reiterating the need to expand its criteria today.
In their own appeals today, IPSE also urged the Chancellor not to hit the self-employed with tax changes, a path Rishi is reportedly considering.
Andy Chamberlain, Director of Policy at IPSE, commented on this: “After the drastic financial impact of the pandemic, there is no doubt that a tax raid on the self-employed sector at this time would be crippling.
“Any increase in corporate taxes would also cause serious damage to the many freelancers who work for limited companies.
“Above all, it would be deeply unfair to increase taxes on the self-employed to pay for aids to which at least a third of the sector simply does not have access.
“We urge the government to follow the recommendation of the Special Treasury Committee and not to increase taxes in this budget – especially on the self-employed.
“Instead, it should extend support to excluded self-employed groups such as newly self-employed and those working through limited companies.
“Many of these groups are desperately struggling and in desperate need of support after nearly a year of hardship.
“In our pre-budget submission to the Treasury, we also called on the government to urgently delay and rethink changes to the IR35 self-employed tax system. These changes were delayed last year because the government recognized that the sector was not prepared for them. and that, with the impact of the pandemic, they would harm the self-employed and the economy. The situation is not better now: and, in fact, it would be the worst time possible to introduce these changes.
“The innovation and flexibility of the self-employed sector will be vital for economic recovery from the pandemic. For this to happen, however, the government must take a long-term view and nurture and protect the flexible workforce now for the good of the economy and the country. It should not – as some reports suggest – seek short-term gain at the expense of long-term pain. “
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