The Association of Independent Professionals and the Self-Employed (IPSE) has said that the government raising Corporation Tax and National Insurance Contributions to pay for partial support during coronavirus would be “unjust, uneconomical and unbelievable.”
IPSE has argued that making the 1.5m forgotten self-employed pay for support they did not get would be unfair. It has also said that given the slump in the number of self-employed, just when they would usually be expected to be driving economic recovery, it would also be uneconomical to squeeze the sector 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 1.5m who fell through the gaps, leaving many financially devastated.
“The idea that this 1.5m 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.
“Normally, the self-employed would be expected to play a major part in recovery during an economic crisis. This quarter, however, we have seen the biggest drop in self-employed numbers on record. If the government wants to avoid the country slumping further into recession, it must not squeeze this struggling and vital sector with unjust tax hikes.”