It’s raining tax…so grab your umbrellas because we are in for a real storm, and guess who is behind this? Yes, you guessed it…
It is that tax fiend Mr Philip Hammond, who just can’t help himself, can he? You would have thought he would had enough by now, with the outrage in years gone by with his “tax grabs” and the embarrassment of being involved with Theresa May.
But No. He retired back to his bunker for a few months to regroup, rethink, and replan…and now, he is back with a vengeance
If Philip Hammond gets his way then around 170,000 self employed workers will be paying around £7500 more tax every year.
This includes gig workers, contractors, and freelancers, and will see those working in the IT industry and management consultancy industries the most hit in the wallet or handbag.
Put simply…It will be the employers who are in charge of deciding your tax status, and if they decide you are “employed” then get ready to say hello to MORE TAX.
This happens because of something called IR35 and it has already caused mayhem among contractors in the public sector.
It now appears that Philip Hammond has tweaked it a bit, and he is now ready to push IR35 on the private sector as well.
For example, if you are a contractor in the private sector who makes £55,000 a year, with expenses of £3000 a year…then you will be £7489 worse off in tax if Mr Hammond gets his way.
So get ready for the rain storm, because it is really going to flood over the next 12 months.
Sure, you could just put up your umbrella and try to grin and bear it, but that is what they did in the public sector, and look what happened there. It is a right mess. A farce.
Unfortunately it looks as though the exact same thing is going to happen in the private sector, and there is nothing you can do about it.
The only thing we can suggest is to get away from the public and private sectors for good, and go your own way, away from IR35 and all of this madness.
Another thing you can do is to hire a very good accountant who knows what they are doing. They might be able to navigate your ship around this storm and take you to calmer waters, in a legal and above board way, of course.
Other than that – all we can suggest is to keep on reading the UC blog. Even if its raining outside and the streets are flooding…you can count on us to give it to you straight.