Freelancer group, IPSE has welcomed the fall in UK inflation, but warned that government IR35 tax policy is still a major worry for self-employed people.
Office of National Statistics (ONS) data shows that inflation fell from 2.7 per cent in August to 2.4 per cent in September. The fall was largely driven by lower prices for food and non-alcoholic beverages.
Andy Chamberlain from IPSE said: “The drop in inflation will be welcomed by many across the UK because it means that people will feel more money in their pocket. That means income, in real terms, is higher.
“It’s good news for the self-employed and the wider country that inflation is falling towards the Bank of England’s target rate of two per cent. However, there are dark clouds on the horizon. There is still no clear plan to mitigate any effects of Brexit on the self-employed, and Government policy on IR35 is highly likely to slow down growth in the sector.
“The Government should prioritise the wellbeing of the self-employed sector as we enter this crucial time for the economy. That means reversing its position on IR35 changes in the private sector, or, at the very least, delaying any changes until 2020 at the earliest.”
For more information about the controversial IR35 tests and rules; and other aspects of IR35, see Shout99's News on IR35 section.
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Susie Hughes © Shout99 2018