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The Chancellor announced two changes in a step to reduce the tax differential between the self-employed, director-shareholders and the employed. These changes include an increase to the main rate of national insurance contributions (NIC) paid by the self-employed and a reduction to the new dividend allowance.
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When the Chancellor Philip Hammond announced his Spring Budget to Parliament, the wider implications are sure to affect SMEs across the UK. But will those changes be beneficial or detrimental to conditions for the UK’s owner-managed businesses?
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Contractor tax advisor, Qdos Contractor, has responded to the Budget with concern, as the Chancellor, unveiled the Government’s plans to build ‘an economy that works for everyone, but seemingly not those working for themselves.
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The Forum of Private Business has given the Chancellor four out of 10 for his Budget announcements, with a warning that continued pressure on small businesses and the self-employed is short sighted as we look to get Britain trading again.
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The self-employed were the biggest losers in Chancellor Philip Hammond’s Budget, according to freelancer group IPSE.
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Often in the Budget, the devil is in the detail in the announcements which follow the Chancellor's speech, but on this occasion, Philip Hammond made it clear from the Dispatch Box that he and the Government wanted to act on what they perceive as an unfairness in the amount tax paid by employed compared to self-employed or limited company directors.
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The Chancellor's Budget speech will take place today (Wednesday, March 8, 2017) at 12.30.
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The details relating to the controversial public sector off-payroll legislation have revealed the surprise that the responsibility for deciding if IR35 applies will be with the client or 'end-user'.
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The changes to the VAT Flat Rate Scheme as announced in the Autumn Statement could bring complexity and further uncertainty for freelancers and small businesses.
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The Autumn Statement dealt a blow to freelancers who work in the public sector, as the Government ignored pleas from industry and trade bodies to rethink their clampdown.
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