Self-employed Articles

Self-employed welcome Chancellor’s ‘screeching’ U-turn

Chancellor Philip Hammond has been forced to make a ‘screeching’ U-turn on National Insurance contributions (NICs) for the self-employed.

In his budget statement last week, the Chancellor said that he wanted to increase Class 4 NICs, which are only paid by self-employed workers, by two pence in the pound in 2019. 

Following heavy criticism from Tory backbenchers, the media and the self-employed community, the Chancellor has dropped this policy.

The SNP leader in Westminster Angus Robertson called it a “screeching” U-turn while Labour said the move was “humiliating”. 

marketing | 31 October 2016
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A landmark court ruling has found that Uber drivers are not self-employed contractors and can be classed as employees.

The employment tribunal ruled that the taxi app drivers are entitled to minimum wage and other benefits.

It was the case of the decade for employment law – pitting the popular lift hailing app company against one of Britain’s most powerful unions in a tribunal case that threatens to shatter the so-called ‘gig economy.’

The ruling isn’t just important for Uber, its drivers and its customers - it could also have more far reaching consequences for other self-employed contractors and their employers.

In this blog post we take a closer look at the case and evaluate some of the potential consequences of the ruling.

marketing | 19 September 2016
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A month after HMRC told Deliveroo that is needs to pay its drivers the minimum wage, two more legal cases further highlight the issue of modern day payment practices. 

The so-called ‘case of the year for UK employment law’ will see a group of Uber taxi drivers go to a tribunal to argue that they are not self-employed and so are entitled to employment benefits like sick pay and holiday pay.

Experts believe that the outcome of this legal challenge could send a shockwave through the jobs market. The ruling could influence employment practices in a range of sectors and industries. 

Two organisations representing the interests of small business owners and self-employed workers have urged the Chancellor to deliver a budget that backs enterprise on Wednesday.

George Osborne, they argue, has to recognise the impact that small businesses have on the economy in terms of driving growth and creating jobs.

At a time when tax and pension changes are making things difficult for business owners, it is crucial that the Budget statement sends a strong signal to small businesses.

The Federation of Small Businesses (FSB) used its pre-budget statement to urge the Chancellor to reform business rates and simplify the tax system. 

Philip Hammond’s final Spring budget statement was met with fury from the self-employed community when the Chancellor broke a manifesto promise and increased taxes on the self-employed.

Theresa May had a busy time at the Conservative party conference last week, and hidden among some of the bigger policy announcements relating to Brexit and education reforms was some rare good news for people in ‘non-traditional’ employment.

Midnight on July 31 is the deadline for making your second ‘payment on account’ to HMRC.
If you are self-employed or you own a business and you think that you have to make an advance ‘payment on account’ for this current tax year then this is your last chance to pay before you receive a fine.

A new report has recommended that income tax and national insurance contributions (NICs) should be brought closer together in order to make a tax system that is fit for the future.

However, some fear that the exercise in simplification could lead to a system of winners and losers, with some paying more in taxes and others paying less.

One of the biggest losers under the new system is likely to be some self-employed people, who benefit under the current system of NICs.

The report from the Office of Tax Simplification (OTS) lays out a seven-stage programme for bringing national insurance more in line with income tax.

The headline recommendation is for NICs to be paid on an annual, cumulative and aggregate basis, instead of the current system where NI is calculated weekly or monthly. 

A government sponsored review, carried out by high profile entrepreneur Julie Deane, has concluded that self-employed workers should receive more support when it comes to maternity pay and support with adoption. 

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