Friday’s Mini-budget announcement by Chancellor Kwasi Kwarteng has been very much welcomed by the UK’s self-employed sector.
The Chancellor claimed that these are the biggest tax cuts in a generation – to name just a few, he announced an income tax (basic rate) cut to 19% (from April 2023), an end to the recent NI rise (from 6th November) and for IR35 rules to be simplified.
Tania Bowers, Global Public Policy Director for the Association of Professional Staffing Companies (APSCo), commented, “The Chancellor’s Mini Budget promised to be one that drives growth for the UK and it’s clear that the Truss administration is powering ahead with an extraordinary range of changes to boost the economy.
“The planned repeal in April 2023 of the Off Payroll legislation is a welcome move. APSCo has long called for a review of the measures which have dramatically reduced the flexibility of the skilled independent labour market since they were introduced in 2017 and 2021.”
Tania added, “Many of the proposals in the announcement will strengthen the appeal of highly skilled, professional flexible working in the UK which is long overdue. The planned changes to Income Tax from April 2023 – in particular the abolition of the top rate of income tax for the highest earners – and reversal of the planned increase in Dividend Tax alongside the IR35 repeal, will encourage more individuals back into the flexible labour market to drive growth at end-engagers.
“Having previously called for a reversal of the Health and Social Care levy – which APSCo correctly feared would only serve to drive recruitment, umbrella and PAYE agency worker costs up and exacerbate on-going skills shortages – we are pleased to see it has been scrapped. It’s also promising to see an intention from the Government to make the UK a global powerhouse once again, with the removal of the banker bonus cap likely to strengthen the country’s Financial Services sector.”
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