Labour must ‘grab the bull by the horns’ and resolve tax issues facing self-employed  – London Business News | Londonlovesbusiness.com

With a Labour majority now confirmed, Keir Starmer must “grab the bull by the horns” and get behind the self-employed, says Qdos – an insurance provider for the self-employed.

After releasing an underwhelming manifesto where the self-employed are concerned, the new government have been urged to urgently address the key tax issues facing the UK’s 4.2m population of freelancers, contractors and self-employed workers – who will be crucial to achieving economic growth.

Seb Maley, CEO of Qdos said, “Following years of tax hikes, freezes and aggressive policy reforms, the new Prime Minister needs to grab the bull by the horns and address the biggest issues facing the UK’s self-employed and flexible workers.

“The off-payroll working rules have seen businesses become needlessly risk-averse in engaging contractors. The result is that genuinely self-employed contractors are being forced into what’s known as

‘zero-rights employment’. Reviewing the rules and addressing the flaws of both IR35 and the off-payroll working rules is crucial.

“Keeping the main rate of Corporation Tax at 25% may mean the UK remains competitive internationally, but even the smallest businesses pay 19% tax on profits under £50,000, tapering upwards to the main rate. This needs rethinking to ensure smaller businesses aren’t subject to unfair, or unsustainable, levels of taxation.

“The Loan Charge was ill-conceived and even more poorly executed. It attempts to recover tax revenues lost to avoidance from the unwitting victims of these schemes, rather than the criminals designing and promoting them – with tragic consequences. It’s essential the government shows compassion and does the right thing for those affected. Harsher deterrents and punishments for tax avoidance scheme operators, and better enforcement, are needed.

“Alongside introducing a Single Enforcement Body to manage compliance with employment legislation, the government must also oversee the long-overdue introduction of umbrella sector regulation – helping protect temporary workers from falling into the trap of operating through tax avoidance schemes.”