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New research suggesting the self-employed sector’s contribution to the UK economy fell by an estimated £25bn in 2022 is a 'wake up call' for government to change course on its agenda for the nation’s smallest businesses, according to IPSE, the UK’s freelancer trade body.
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Freelancer confidence in their own businesses has fallen to its lowest levels since the height of the pandemic and lockdown restrictions in Q3 2020.
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The number of tax tribunal cases waiting to be heard has increased more than sevenfold compared to the same quarter last year, from 1,200 at the end of June 2021, to 10,000 in at the end of June 2022.
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Nearly half of UK contractors’ work comes from overseas clients and just over half expect the amount of work they do for clients outside of the UK to increase over the next 12 months.
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HMRC has added umbrella company, Charteris Management Ltd (CML) to its list of tax avoidance schemes. However, the move has been described by one expert as ‘not going far enough’, with another urging the tax office to start calling out ‘the big players’.
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It has been a confusing time for contractors and businesses that use their services, as the regulations and the political powers-that-be who administer them have operated a policy which has been a mixture of revolving doors and U-turns.
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If the Government is serious about ‘embedding simplification’ in the UK’s tax policy-making process it should retain the Office of Tax Simplification (OTS) and consider strengthening it, the Chartered Institute of Taxation (CIOT) has told the Chancellor.
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Reports that the new Prime Minister plans to reform the education system and make the UK more attractive to highly skilled non-UK nationals have been welcomed by agency representative body, APSCo.
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While the political fall-out from the controversial mini-Budget continues, a further measure has been announced which means that small businesses have just become bigger.
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New research shows that freelancers’ confidence in the UK economy for the next 12 months has fallen sharply from -27.4 in Q1 2022 to -56.7 this quarter. This represents the lowest level of freelancer confidence in the economy since the early days of the pandemic in Q1 2020.
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