New research from Pandle shows mooted Budget tax raids will cost Britain’s 2million freelancers dearly, warns SME cloud accountants Pandle

By , in PR PR Economy on .

The mooted Budget tax raid on freelancers will be a “disaster” for the economy wants cloud book-keeping providers Pandle

(PRWEB UK)

New calculations from cloud accountants Pandle show that pre-Budget hints that Chancellor Philip Hammond is eyeing tax and VAT raids on freelancers and microbusiness would lead to “an epic disaster for the economy, for the self-employed and for employers if they are implemented” warns Lee Murphy, the CEO and founder of Pandle (http://www.pandle.co.uk).

Lee Murphy, an accountant and entrepreneur, said: “The British economy over the past 20 years has been a huge success story, creating millions of extra numbers of jobs. The massive growth in people freelancing, particularly professionally and technically skilled mature workers and working mothers, is at the heart of this phenomenon.

“Short term tax and VAT raids on Britain’s 2 million freelancers and 3.3million other microbusinesses will hurt the economy badly by damaging this most dynamic sector, while costing employer’s dearly in additional costs and skill shortages.”

Mooted tax raid on freelancers:
Earlier in the year the government compelled all public sector bodies to stop using freelancers unless they are provided by umbrella companies or operate a company inside HMRC’s “IR35” regime.

Lee Murphy of Pandle said: “It has been a disaster for many public sector organisations. Treasury leaks suggest it could nonetheless be applied to the private sector. Our calculations show that freelancers and the self-employed do not receive substantial tax benefits. {SEE LINKS FOR FULL DETAILS}

“Hitting 2 million innocent people with massive cost and bureaucracy, not to mention additional costs being passed onto the organisations that use them, will damage this essential part of Britain’s economic success.”

Mooted reduction in the VAT limit to bring more microbusinesses into its web:

The Office for Tax Simplification last week recommended lowering of the VAT threshold, dragging in most microbusinesses and freelancers currently outside the regime.

Lee said: “VAT’s complexity is caused by the byzantine web created by the numerous and continuous rules and rulings, and nothing to do with the VAT threshold.

“The thought of dealing with it will send shudders through many microbusinesses. It is a case of “cart before the horse” and the reduction should absolutely NOT happen until the VAT regime is sufficiently straightforward that microbusinesses can apply it without inadvertently breaching some obscure rule.”

Full research here

Media contact:

Mai Rinaldi – 020 7242 2286
PR advisors Kelso Consulting – http:http://www.kelsopr.com

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Maria Burns

Maria Burns

Maria is a Viral News Editor who graduated from the University Of California. She likes social media trends, being semi-healthy, Buffalo Wild Wings and vodka with lime. When she isn’t writing, Maria loves to travel. She last went to Thailand to play with elephants and is planning a trip to Bali.
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