Contractors Abandon Conservatives Over IR35 & National Insurance

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Contractors Abandon Conservatives
Contractors Abandon Conservatives

Contractors Abandon Conservatives Over IR35

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The chickens may be coming home to roost as a new survey by Fluxible, the direct jobs app for contractors, shows Contractors abandon Conservatives in droves.

Here is how contractors say they will vote this time compared with how they voted last time round (in brackets):-

25% – Conservatives (41.1%)

14% – Lib Dems (7.1%)

12.8 – Labour (13.1%)

6.7% – UKIP (4.4%)

3.2% – Greens (2.5%)

3.9% – Regional (3.5%)

21.1% – Prefer Not to Answer (16.5%)

10.1% – Did/Would Not Vote (11.5%)

3.2% – Other (1.1%)

So, 3 out of every 8 contractors who voted Conservative last time are now going to vote for someone else this time.

Presumably this is because of all the atacks on contractors and ther livelihood by Theresa May and Philip Hammond.

Contractors National Insurance Increase

They tried to increase the amount that contractors have to pay in national insurance.

They had to abandon it as they promised in their manifesto not to raise National Insurance.

You can bet your bottom dollar that there will be no such promise this time.

You can also bet your bottom dollar that the Chancellor will reintroduce this national insurance increase in his Autumn Budget.

Contractors Voting for Labour and LibDems

Labour seems to have stayed at a pretty similar level, despite Jeremy Corbyn – although  it is at quite a low level.

They have now been surpassed among contractors by the LibDems who look as if they are going to double their vote amongst contractors.

So, will this have an effect on the election result?

It is too early to say yet.

Contractors Lobbying Conservative Government

Contractors representatives like IPSE could be more effective in lobbying Government on behalf of contractors.

There are also fears amongst contractors that the Government will roll out the recent public sector IR35 changes in the private sector next.

The Chancellor and Prime Minister say that it is unfair that contractors earning £100,000 a year pay less in tax and national insurance than permanent employees on £100,000 a year.

They said that this is an anomaly that they intend to fix.

Of course, this is not comparing like with like.

Permanent Employees Perks and Benefits

This does not include a permanent employee’s benefits like holiday pay, sick pay, maternity pay, pension contributions, national insurance contributions, company car etc.

A contractor’s £100,000 may include many legtimate business expenses.

However, Primie Minister Theresa May and Chancellor Hammond intend to rectify this ‘anomaly’.

And they’ve only just begun.

As they are almost certin to win the election, they are likely to spend the next few years bashing contractors year after year till almost all are inside IR35.

Worst Ever Government for Contractors

The Labour Government who brought in IR35 were bad for contractors.

Camoeron and Osborne, who hinted that they would abolish IR35 and then, when elected, decided to srengthen it instead were very bad.

However, there has probably never been a more anti-contractor Government than the current one.

Contractors will find themselves, and their income, attacked in an unprecedented manner.

It’s about time contractors group IPSE pulled their finger out.

We are likely to see contractors abandon Conservatives over IR35.

That may be a major factor across the country in this election.

But will it be enough?

Probably not.

Contractor Services

If you do need an umbrella company you could try one of the following:-

Simply Umbrella

Public Sector Umbrella Company

If you want to cut your Accountancy costs by using apps try Aardvark Accounting.

For Mortgages specially designed for contractors try Specialist Contractor Mortgages.

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2 COMMENTS

  1. These changes have hit my business, but let’s face it, there are many errors with the article above.
    1) The fact that only a small change to support for Labour and a large leap for the Lib Dems suggests that those taking the poll really have no clue as to what those parties would do to consultants… read any article and it’s obvious that the prognosis is BAD!
    2) Far more voters will be drawn to the Conservatives because they are ‘clamping down’ on deemed avoiders and disguised employees.
    3) The contractor demographic is so low that the Conservatives just won’t care… they also know that we know we’d be much worse off with the other two mainstream parties. A 15% swing for such a low number of people is totally negligible, if this poll is to be believed, and the main beneficiary will be the Lib Dems, who offer no threat to the Conservatives whatsoever.

    • Blahmore, what the pther parties do, or intend to do, to contractors could hardly be worse than what the Conservatives have done and intend to do. I don’t think the numbers are so small that they won’t make any difference. Look at the number of marginals there are and how few votes would make a difference there.

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