Tax hike for freelancers would be unjust, claims IPSE

04 Sep 2020

Chancellor Rishi Sunak's plan to raise the national insurance contributions (NICs) paid by self-employed workers would be unjust, the Association of Independent Professionals and the Self-Employed (IPSE) has claimed.

According to reports, the Chancellor is considering bringing the 9% Class 4 NICs rate paid by the self-employed into line with the 12% rate for employees. It is one of the ways the Treasury is reported to be looking at raising revenue after spending billions on its coronavirus (COVID-19) support packages.

When Mr Sunak announced the Self-employment Income Support Scheme (SEISS) in March, he warned: 'If we all want to benefit from state support, we must all pay equally in the future.'

IPSE has argued that making the 1.5 million self-employed pay for support they did not get would be unfair. It also said that given the slump in the number of self-employed individuals it would also be uneconomical to squeeze these workers further.

Andy Chamberlain, Director of Policy at IPSE, said: 'The last few months have financially hammered the self-employed, with over two-thirds seeing a drop in demand for their work. Government support was some help – to a proportion of the self-employed.

'More noticeable, though, was the 1.5 million who fell through the gaps, leaving many financially devastated. The idea that this 1.5 million should now suffer a drastic tax hike to pay for support they never got is unjust, uneconomical – and unbelievable. If the government is really considering this, it must stop now.'

Register for our Monthly Newsletter -

Why not register to receive our Monthly Newswire?

Once a month we'll send you an email packed full of essential business news and handy tax tips to help save you money.

Sign up today »

Tel: 01749 685000

Email:

Chalmers HB
20 Chamberlain Street
Wells
Somerset
BA5 2PF


Contact us | Credits | Accessibility | Disclaimer | Help | Site map |

© 2020 Chalmers HB. All rights reserved.
We use cookies on this website, you can find more information about cookies here.

Chalmers HB Limited, Registered in England, Registered number 4233537, Registered Office: 20 Chamberlain Street Wells Somerset BA5 2PF. Chalmers HB Audit Limited, Registered in England, Registered number 9739736, Registered Office: 20 Chamberlain Street, Wells, Somerset BA5 2PF.