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
Become a member
Ensuring your voice is fairly heard
We communicate the most important issues facing the self-employed to the highest levels of government. Campaigning on your behalf for 25 years - we get your voice heard and make change happen.
The latest self-employed and freelancing news
This article debunks common myths about Making Tax Digital for Income Tax and explains what the April 2026 changes will actually mean for sole traders.
Are Generation Z really behind a side hustle boom, or is it all hype? After digging into the latest data, IPSE's Fred Hicks has the answer.
Meet the newest additions to IPSE’s board of directors, who play a vital role in setting strategy for the organisation.
