Header logo
Log in
IPS Es reaction to the budget 2024

IPSE slams hidden cost of employers' national insurance changes for umbrella workers

Responding to the 2024 Autumn Budget, IPSE has highlighted the impact that changes to employers' national insurance will have on contractors working inside IR35.

About us simpler
IPSE Press Office
30 Oct 2024
1 minutes
Share

IPSE, the self-employment association, has described the Chancellor’s changes to employer’s national insurance at today’s Budget as a “hammer blow” for contractors employed by an umbrella company.

Andy Chamberlain, Director of Policy at IPSE, said: “The Chancellor’s changes to employers’ national insurance will leave a huge dent in the finances of more than 700,000 umbrella company workers, who cover the cost of employers’ national insurance through their rate of pay.

“Not only will they be covering a higher headline rate of employers’ NI from next April, but they’ll be paying it on an extra £4,100 of their earnings. For many umbrella workers, this will cost them in excess of a thousand pounds per year.

“This is a hammer blow for umbrella company workers – many of whom have been forced into these companies due to IR35 tax rules – and is a clear breach of government’s pledge not to raise taxes on working people.”

ENDS

The latest self-employed and freelancing news

Are self employed working people 2
Ambiguity takes hold as Starmer avoids self-employed tax question
+3 more

IPSE's Fred Hicks calls on the government to clarify who counts as a ‘working person' – as growing ambiguity leaves the self-employed increasingly uneasy about th...

24 Jul 2025
Fred H
Fred Hicks
Listing IPSE responds to pensions review self employed
IPSE reacts to new Pensions Commission’s focus on the self-employed
+2 more

The UK's self-employed membership body, IPSE, has praised the new Pensions Commission's "long-overdue" recognition of the self-employed pensions problem.

21 Jul 2025
About us simpler
IPSE Press Office
Flexible planning for self employed 2
Retirement on your terms: flexible planning for the self-employed
+2 more

Flexibility is one of the greatest advantages of the self-employed lifestyle. In this blog, financial planning experts Chase de Vere explain how, with the right s...

15 Jul 2025
Author default profile picture
Chase de Vere
IPSE-LOGO-HEADER

Join our newsletter

Registered in England and Wales, no 03770926. 4th Floor, 95 Gresham Street, City of London, London EC2V 7AB