Self Employed Tax Returns Soar
The Government were delighted by tax returns from the Self Employed which soared by a third from £16.4 billion last January to £21.9 billion this January.
That’s quite a hike in taxes from the self employed.
Indeed, these are the highest self assessed tax receipts since monthly records were kept in April 1999.
The extra money from freelancers will mean that the Government will not have to raise taxes. Moreover they may be able to cut taxes before the next election.
They will also be able to cut some of the Government debt.
Self Employed Crucial to Economy
The Government have often said that the Self Employed are a crucial part of the economy and these self employed tax returns bears this out. However, as the nurses have seen, praise doesn’t get you anything from the Government. Perhaps the Government can get MPs to stand up and clap for the self employed and the great bonus they have given the country.
A lot of the rich in the UK have Trust Funds abroad to save tax as do Conservative Party Ministers and MPs. Even Labour MP, Margaret Hedges, who was always battering freelancers over their tax, saying they were tax dodgers, was found to have benefited from a Family Trust abroad.
Self Employed Tax Returns Save Country
When the country is in terrible trouble from a number of sources, it looks as if the self employed tax returns are going to save the country.
Of course, the Government and HMRC will claim that it was the IR35 Off Payroll rule changes that helped boost the takings from the self employed.
However, that is a great cost, as most of the UK’s big companies are now running at a sub optimal level and are at a competitive disadvantage to foreign firms as they can no longer decide themselves what is the optimal percentage of permanent staff and of contractors that will be most efficient for their businesses.
One would bet that the amount the country and the Government lose from tethering the hands of our biggest companies would be much greater than anything the Government get from the off payroll rules.
Please share this article using the social media buttons at the top and bottom of the page.
For all critical IR35 news and advice for contractors click on IR35 News.
Ad – Contractor Services
Do you need an umbrella company that is right for you and returns you most? Fill out the form below to receive a call today.
For all necessary business insurance, including IR35, click on Business Insurance for Contractors
If you want to keep abreast of news like this, as well as getting some great advice on subjects like IR35, just Connect to us as we post most news and advice here.
Join our Contractor Dragons Investment Club to hear of money making opportunities before companies come to market.