A Contract with the Self-Employed

IPSE's manifesto, 'A Contract with the Self-Employed’, addresses key questions on taxation and potential regulation and offers a full set of practical policies the next government should deliver to support the self-employed.

This includes:

  • Defining self-employment in law to stop exploitation and keep self-employment positive
  • Reviewing the tax system for the self-employed to ensure fairness and efficiency
  • Providing fair parental benefits for self-employed mothers and fathers
  • Controlling the damage from IR35 changes in the public sector, and committing to no similar measures in the private sector
  • Developing a proper pensions solution for the self-employed
  • Changing the tax treatment of training to encourage development & career progression

A Fairer, More Efficient Tax System

IPSE's Tax Manifesto, ‘A Fairer, More Efficient Tax System’, expands on the points made in the tax section of our main manifesto for the 2017 General Election. It addresses the problems with the existing tax system and provides solutions. There are no quick fixes, but we believe each of our policies is achievable. The policies include:

  • A fundamental, strategic review of the tax system
  • Limiting the damage caused by changes to the way IR35 works in the public sector
  • Introducing a new corporate form tailored for freelancers - the Freelancer Limited Company
  • Easing the transition to Making Tax Digital
  • Not penalising the self-employed by raising Class 4 National Insurance Contributions
  • Removing the burden of policy making from an already under-resourced HMRC

We are looking forward to working with the next government to improve the tax environment for the UK’s 4.8 million self-employed.

Background to the 2017 general election

Ahead of the 2017 general election, self-employment has never been more important to the UK economy nor higher on the political agenda. There are now 4.8 million self-employed people in the UK, 15% of the workforce. They produce £225bn of goods and services each year – enough to fund the NHS twice over. They give our economy the flexibility and dynamism to take us through the uncertain years ahead.

The last government was closely considering how to adapt policy to this changing world of work, having commissioned Matthew Taylor to examine “modern employment”. In its last budget, Chancellor Philip Hammond initially announced increases to national insurance for sole traders before later backing down under pressure from IPSE and other groups. Whether the next Prime Minister is Theresa May or Jeremy Corbyn these issues are likely to remain key over the next Parliament.