IPSE, the UK’s Self-Employed Association, has welcomed moves to make higher tax-free mileage rates permanent, open up parental pay to self-employed dads and partners, and replace the all-or-nothing Carer’s Allowance earnings limit with a taper for self-employed unpaid carers. It is calling on the Chancellor to use Wednesday’s Budget to tackle the wider pressures facing the UK’s 4.5 million self-employed.
Josh Toovey, IPSE’s Head of Policy and Research, said:
“This is a sensible change, and it’s one we’ve been raising with Government. Mileage rates only work if they reflect what it really costs to run a vehicle. Making the higher rate for the first 10,000 miles permanent means people can plan their costs without wondering what’s coming next, and lifting the rate beyond that matters too, because those clocking up the most miles had been left furthest behind.
“It won’t make a litre of diesel any cheaper, and it’s no silver bullet for the fuel costs squeezing the self-employed, but it does mean those who can’t work without a vehicle keep more of what they earn.
“We’ve also long campaigned for parental pay to be extended to the self-employed, so it’s good to see self-employed dads and partners finally brought in. It corrects an obvious gap, and it means more of them can be at home for those first few weeks without worrying about the bills.
“Moving away from an all-or-nothing Carer’s Allowance is welcome too, particularly for self-employed unpaid carers. Our research found that the earnings limit left most of them unable to claim, even though their income can swing from one week to the next. A taper means a busy month no longer wipes out their support in one go, and we’ll be keen to see how it works in practice for people running a business while caring for a loved one.
“But welcome fixes only go so far. On Wednesday, the Chancellor needs to reverse the Employer NI hike, which has left businesses wary of engaging contractors and freelancers, and back it with measures that make working for yourself a more secure choice.”
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