All eyes are on Wednesday’s Autumn Budget, with Chancellor Jeremy Hunt under pressure to announce policies to ease the tax burden.
Experts from across the personal finance sector are leading calls for meaningful change, urging the government to focus on fixing the problems affecting the UK’s self-employed and flexible workers.
While inflation has fallen, it remains above the Bank of England’s 2% target; as a result, households and businesses are facing higher costs across the board. At the same time, the government has overseen a series of tax freezes and hikes which have put finances under further strain.
Against this backdrop, the Autumn Statement is a timely opportunity for the Chancellor to solve these challenges with appropriate measures.
Terry Payne, Managing Director of staffing app, hubbul, called for the minimum trading allowance (currently £1000 per year) to be raised.
Payne said, “With the financial challenges faced this year, many people have started side hustles to boost their earning power.
“The government should reward and support these workers; increasing the trading allowance is one way to do so. This would put more money in the pockets of these workers, who are crucial to the economy and the businesses that engage them.
“This week’s Budget gives the Chancellor an opportunity to put measures in place that will make a difference to this under-appreciated sector of the workforce.”
Seb Maley, CEO of IR35 expert, Qdos, urged the government to reverse the Corporation Tax increase and address IR35 said, “The government must rethink how it taxes and treats the 4.2m people working for themselves in the UK. It’s a drum many of us have been banging for years, but policymakers have buried their head in the sand.
£Tax hike after tax hike, needless reforms and an increasingly aggressive HMRC mean the government is on the verge of burning all bridges with the self-employed workforce. But the fact is, time is running out for the Conservative Party.
£The Autumn Statement offers the chance to reduce the tax burden – whether that’s rolling back on the recent Corporation Tax hike or fixing the problems that plague the IR35 legislation.”
Julia Kermode, CEO of umbrella company compliance specialist, PayePass, said 700,000 umbrella workers must be protected from tax avoidance schemes.
Kermode said, “The umbrella sector remains unregulated, seven years since the government promised to take action. Given the billions that pour through the umbrella industry every year, the government must turn its attention to eradicating tax avoidance schemes once and for all.
“The Autumn Statement is a timely opportunity to stabilise the sector; without urgent action, this vitally important industry is at risk – along with the livelihoods of some 700,000 workers.”