Government must be cautious when considering self-employed tax changes


IPSE has today (1 March) responded to the Government’s proposed consultation into the tax system for the self-employed workforce.

It has been reported that Chancellor Phillip Hammond is likely to consult on changes to self-employed taxation system in next week’s spring Budget. The Treasury believes there is a need to tackle the growing disparity between workers who pay tax using PAYE, the self-employed and those who operate “personal service companies”.

IPSE Deputy Director of Policy and External Affairs, Andrew Chamberlain, commented: “IPSE would welcome the Government’s consultation on the tax system for the self-employed population. The current system is too complex. However, the Government must proceed with caution.

“The freelance population contributed £119 billion to the UK economy in 2016 and the overwhelming benefits they bring should not be underestimated. The dramatic rise in the number of self-employed people have helped to keep unemployment rates down. Any changes to the tax system must be carefully considered or will run the risk of damaging one of the UK’s principle competitive advantages – it’s flexible labour market.

“IPSE looks forward to working with the Government to make a fairer tax system which is up-to-date with modern working practices.”

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