A majority freelancers, 79%, believe UK government tax policies are harming their businesses, according to a survey by IPSE, an association for freelancers and self-employed workers. It also found that 54% of freelancers are less confident about their businesses’ prospects over the coming year than they were in the past 12 months.

IPSE’s report was released 8 August, shortly after UK Chancellor Rachel Reeves announced the Autumn Budget report will be delivered 30 October.

It’s based on an online survey with 572 responses that was conducted by IPSE and PeoplePerHour.

“For the past two years, the impact of record high inflation has been the main story in the business world. But for millions of freelancers, who are our very smallest businesses, the biggest barrier to growth has always been the tax system,” Andy Chamberlain, IPSE’s director of policy, said in a press release. “This is about more than just rates of tax. Convoluted tax rules like IR35 are crushing freelancers and the businesses they’ve worked so hard to build.”

IR35 was introduced by the UK government to ensure that off-payroll workers pay roughly the same income tax and national insurance as standard employees. When IR35 rules were extended to the private sector in April 2000, HMRC estimated that around £1.2 billion per annum was being lost in tax revenues because only 10% of the businesses supposed to be accounting for their income using the IR35 Intermediaries rules were actually doing so.

The survey also found that 48% of freelancers reported having less confidence in the UK’s economic outlook for the coming year compared to the past 12 months. That’s down from IPSE’s previous survey 63% reported having less confidence.

“Rachel Reeves faces her first big test as Chancellor with a Budget in October and has made no secret of the need to raise money,” Chamberlain said. “But freelancers will be hoping that the Chancellor is also open to building a fairer, simpler tax system for millions of sole proprietors going it alone.”