IPSE wants a delay to the increase to National Insurance and dividend tax which is set to effect from this April. It says that the self-employed sector is already struggling with soaring household energy bills, inflation and the impact of recent tax changes, particularly relating IR35.
IPSE believes the planned increase could further damage the sector as it tries to recover.
Andy Chamberlain from IPSE said: "With the average household bill set to rise by 54 per cent from April, we at IPSE believe that now is not the time to increase taxes on thousands of self-employed workers. The energy crisis is likely to hit freelancers especially as they typically work from home and therefore use more energy to heat their homes than office-based workers.
“Working for yourself is already challenging. Any additional costs could severely damage the sector’s ability to recover. While self-employment was one of the most dynamic parts of the economy pre-COVID, the sudden loss of work during the lockdowns has scarred the sector and made it more difficult for contractors to make a living.
“The rise in National Insurance is particularly damaging to those that work at an umbrella company, as self-employed workers are forced to pay the tax twice - as an employer and as an employee. We hope that any delay to the planned increase in National Insurance will give HMRC and the Treasury time to solve this pressing issue.”
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