The Association of Independent Professionals and the Self-Employed (IPSE) has said in order to keep our economy flexible and competitive in the lead up to Brexit, Johnson must give the contracting sector the support it needs.
The IPSE has made the following recommendations:
- A modern tax system for the self-employed. The UK’s overly complex tax system needs clarifying and updating for the modern age and rising self-employment. We believe the government should begin by scrapping the damaging changes to IR35 in the private sector.
- Promote British business and entrepreneurialism. At present, the UK’s nearest trading partner, Ireland, has a corporation tax rate of 12.5 per cent. For the UK to remain competitive and a good place to do business, we recommend the government should equalise corporation tax with Ireland.
- Reduce the retrospective nature of the loan charge. Current measures to tackle the loan charge include the targeting of arrangements made up to twenty years ago. We believe the government should reduce this to six years, which is the standard for tax investigations. We also believe the government should focus more on the companies that sold these schemes in its efforts to clamp down on the loan charge.
- Late payment. Freelancers spend an average of 20 days per year chasing late payment and, in some sectors, lose an average of £5000 per year to clients who fail to pay. We hope the new government will continue to strengthen the role of the Small Business Commissioner to stamp this out.
- Broadband infrastructure. Entrepreneurism could be unleashed across the UK, from cities to rural villages, if they have access to consistent, superfast broadband. Currently, adequate coverage is limited to urban hubs. We recommend super-fast broadband service being available for all by 2025.
- Support disabled freelancers. Disabled people are one in seven of all freelancers but overlooked in the previous Prime Minister’s disability action plan launched June 25th2019 and in welfare reforms. We would like to see the New Enterprise Allowance mentoring and payments extended to two years to better support disabled entrepreneurs.
Chris Bryce, IPSE’s CEO, said, “We hope he (Mr Johnson) once again makes them (Conservatives) the party of business. Small and micro businesses in particular have been hit by poorly thought through policies like IR35 and the Loan Charge, which are a massive drag on the flexible and innovative economy that the UK needs to be.
“If he wants to energise the country and make the UK truly globally competitive, he and his new team must get behind our most can-do and productive people: the £275bn self-employed sector.”
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