Mike Parkes, technical director at GoSimpleTax, said:
“As Liz Truss has pulled away from Rishi Sunak in the leadership race, she has also forged ahead with the support and spotlight she’s placed on the UK’s self-employed and small businesses, pledging a “small business and self-employed revolution” because they are “the future of our economy”.
“With the UK tax take at a 70-year high, the leadership candidates’ debates have focussed on tax cuts and Truss has highlighted current self-employed tax rules as unfair, saying they force genuinely self-employed tradesmen, like electricians and plumbers, to pay too much. If she gets into No10, Liz Truss has promised a review into IR35. A review, of course, does not mean there will be any updates, but according to our data, genuinely self-employed people would welcome lower taxes amid the ongoing cost-of-living crisis.
“A GoSimpleTax survey of 500 self-employed people found 27% of people said lower taxes was their top ask of the Government. Ahead of a potential emergency budget, GoSimpleTax research has highlighted the areas freelancers and self-employed want policymakers to place their attention.
- Tax simplification and clarity on making tax digital
- Lower taxes
- Targeted grant support
- IR35 review
- Reduction of red tape and associated costs in comparison to larger businesses – for example, lower costs around DBS checks for self-employed
- Enhanced financial support when facing illness or hospital treatment
- Targeted reduction in lowering customs duties for self-employed and small businesses
- Business rates reform.
“Over 2020, the number of self-employed people in the UK dropped from around five million to nearly four million and more than 10% of people we surveyed said they wouldn’t be in self-employment in 12 months or were not sure they could be. With a squeeze on costs and indicators pointing towards a recession, there’s a significant opportunity for a new leader to set out their support at an emergency budget and beyond.”
