Ending the War on the Self-Employed

Self-employed taxpayers face a hostile regulatory environment and an unreasonably high tax burden.

Find out how the potential of self-employed people is held back.

From 2024 self-employed taxpayers will have to collect and send digital tax information to HMRC four times a year on top of preparing their self-assessment submission.

A more restrictive approach to IR35 tax regulations has made it harder for freelancers to get work from larger companies.

IR35 changes mean that 7 out of 10 contractors have to use umbrella companies that charge fees and force contractors to pay their employers' national insurance contribution. Some of them skim contractors' pay packets and withhold holiday pay.

On top of the NI surcharge of 1.25% and the inflation stealth tax, people who have incorporated as small businesses now have to pay for an extra 1.25% dividend tax hike.

The numbers

1 million

fewer self-employed since 2019

£300 billion

contributed to economy by self-employed every year

70%

of contractors say they have lost independence with IR35 rules

62%

of businesses say their flexibility and agility is enhanced by freelancers

What needs to happen

1. Back dynamism

The government should commit to encouraging self-employment

2. Free up work

Roll back restrictive IR35 changes

3. Simplify the process

Reverse plans to force people to register tax information four times per year

4. Make tax fair

Set income tax brackets to rise in line with inflation