UK freelancing and contracting is going to feel the full might of the Chancellor's crusade to end tax avoidance. And soon.
The fact that the Government is oblivious to how self-employment works (otherwise how would so many have been culpable for expenses scandals?) isn't the issue.
Yes, we know they've brought in outside help to give the career politicians an insight into how entrepreneurship really works. But the fact is, that help may:
- have already come too late;
- contradict measures the government has taken thus far to the extent that all the certified feedback in the world will make no difference.
Already, 131,000 self-employed people have decided to go back to the rat race. Without so much as a whimper! The rot has got to stop!
AUCAE met with the taxman last month to discuss what the SDC directive would mean for contractors operating through umbrella and limited (personal service) companies.
It's hard to argue the case for the cuts independent professionals will face against HMRC when only 3 contractors have responded to the public consultation document.
Anyone operating through an umbrella company, a PSC or are contracting through their own limited company needs to add their weight to this discussion.
Biting the hand that feeds them
It's not just about getting behind AUCAE. It's about telling the government that they're wrong.
We cannot overstate the flexibility that temporary workers of all denominations have brought to businesses during economic recovery. Yet measures announced in the 'Emergency Budget' seem set to ride roughshod over the UK's independent workforce and see them no better off than employees.
Employees will moan, saying "So you should". But neither they nor the government seem to get just what it takes to:
- stand up on your own two feet to earn a living;
- develop the balls to run your own company;
- build a brand that defines your self and your niche;
- create an exceptional service that only the freedom of being your own boss allows you to deliver.
If you are concerned that the government will take the profitability out of your business, you're not alone. IPSE has already warned us about the potential that imminent changes have of damaging independent professionals' lifestyle. AUCAE are echoing those views. Now it's time for you to do something about it.
Take the time to fill in this survey prepared by AUCAE. Submit your perception of what the reforms to tax, IR35 and SDC will mean to you.
Change, like opinion, is hard to reverse once it's been made. But we can affect the changes that are coming. We can sway opinions with cold, hard fact if we get in before the think tank has time to ruminate. This is your chance to have your say; make your voice heard, here
image credit: Stuart Miles, freedigitalphotos.net