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UK – IPSE publishes manifesto with recommendations on how government can support the self-employed

31 May 2017

IPSE, the Association of Independent Professionals and the Self-Employed, last week published its manifesto, ‘A Contract with the Self-Employed’, which details policies that the group wants to see the incoming government implement.

The manifesto also addresses key questions on taxation and potential regulation and offers a full set of practical policies the next government should deliver to support the self-employed. 

This includes:

  • Defining self-employment in law to stop exploitation and keep self-employment positive
  • Reviewing the tax system for the self-employed to ensure fairness and efficiency
  • Providing fair parental benefits for self-employed mothers and fathers
  • Controlling the damage from IR35 changes in the public sector, and committing to no similar measures in the private sector
  • Developing a proper pensions solution for the self-employed
  • Changing the tax treatment of training to encourage development & career progression

“In conjunction with the ongoing Taylor Review into modern employment practices, our manifesto calls for a statutory definition of self-employment to end widespread confusion and ensure working for yourself remains an attractive and attainable career choice,” IPSE said in a statement.

“We have called for strategic review of the tax system – which, in its current state, is based upon the traditional employer/employee model. As self-employment booms, the government needs to supplement this 21st century way of working with a fairer, more efficient, 21st century tax system.” 

IPSE also stated that they have asked the government to make careful considerations before releasing IR35 measures in the private sector, create a bespoke tax system for freelancers, simplify Making Tax Digital and maintain the current rate of NICs.

“The political climate of the UK has shifted fundamentally in the last two years, and with Brexit on the horizon, the only certainty is that everything is uncertain,” James Collings, IPSE Chairman, said. “In this state of flux, it is more important than ever the UK has a strong and flexible economy that can change with the times.

“The outgoing government’s approach to taxing the self-employed has been a complete disaster, with the ill-conceived plans to change IR35 and national insurance rightly attracting strong criticism,” Collings said. “What is needed now is a fundamental and clearheaded review of self-employment and taxation.”

Yesterday, IPSE began a new campaign for the UK General Election, with the message of “Don’t strangle the self-employed”, stressing that self-employed make an enormous contribution to the UK’s success

“The self-employed will not be silenced,” Chris Bryce, IPSE CEO, said. “It’s not just that they make up 15% of our workforce: they’re also one of the most dynamic and productive sectors of our economy, and their contribution will be vital in the years ahead.”

“IPSE has laid out firm recommendations for how the next government can support the self-employed. Knee-jerk tax hikes aren’t the answer – instead, we need a comprehensive review of the UK pension and tax systems to ensure a fair deal for the self-employed.”