Self-employed may pay for support they didn’t get
Rishi Sunak is proposing to raise taxes
Chancellor Rishi Sunak’s proposed autumn tax raid would see more than a million self-employed workers pay for support they never received, it has been claimed.
Mr Sunak is plotting hikes on a range of taxes such as capital gains and corporation tax in order to raise between £20bn and £30bn to help pay for the cost of Covid-19 support.
IPSE (the Association of Independent Professionals and the Self-Employed) says many self-employed pay themselves with dividends and have yet to receive any subsidy.
It said raising corporation tax and national insurance contributions to pay for partial support during coronavirus would be “unjust, uneconomical – and unbelievable”.
IPSE has argued that making the 1.5 million “forgotten” self-employed pay for support they did not get would be unfair.
It has also said that given the slump in the number of self-employed it would also be uneconomical to squeeze the sector further.
Andy Chamberlain, director of policy at IPSE, said: “The last few months have financially hammered the self-employed, with over two-thirds seeing a drop in demand for their work.
“Government support was some help – to a proportion of the self-employed. More noticeable, though, was the 1.5 million who fell through the gaps, leaving many financially devastated.
“The idea that this 1.5 million should now suffer a drastic tax hike to pay for support they never got is unjust, uneconomical – and unbelievable. If the government is really considering this, it must stop now.
“Normally, the self-employed would be expected to play a major part in recovery during an economic crisis. This quarter, however, we have seen the biggest drop in self-employed numbers on record.
“If the government wants to avoid the country slumping further into recession, it must not squeeze this struggling and vital sector with unjust tax hikes.”