Chancellor listens to IPSE and the UK’s smallest businesses

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IPSE is pleased that the Chancellor has listened to its message on behalf of the UK’s smallest businesses and not lowered the VAT threshold. It is also delighted that the Chancellor has heeded its warnings and chosen to conduct an impact assessment of off-payroll rules in the public sector before he considers extending them.

Chris Bryce, IPSE’s CEO, commented: “IPSE were pleased to see that the Chancellor has understood our message that businesses of all sizes – including the vital self-employed community – need support. Tax is already a nightmare for many self-employed people, and lowering the VAT threshold would have added reams of red tape to the mess. By wisely choosing not to lower the threshold, the Chancellor has saved hundreds of thousands of self-employed people from very serious difficulties.

“It was also widely rumoured for some time that the Chancellor would use the Autumn Budget to extend the disastrous changes to IR35 laws from the public sector to the private sector. IPSE, however, warned again and again that the changes have caused chaos in the public sector, driving out thousands of contractors and stalling numerous government projects.

“Instead of extending the changes now, Mr Hammond paid heed to IPSE’s warnings and pledged to consult on extending the changes to the public sector and ‘draw on the experience of the public-sector reforms, including through external research’. IPSE stands ready to join the consultation to ensure it takes into account the needs of the legitimately self-employed and accurately reflects the heavy damage the changes to IR35 have caused to the public sector.”

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