Trade groups, IPSE and the FCSA, and two staffing bodies, APSCo and the REC have set out some early demands of the new Tory administration. Suggestions for new ministerial posts, conciliation service for unpaid contractors & a skills-led immigration policy have all been put forward.
The Association of Independent Professionals and the Self-Employed stated, “A majority government brings stability and certainty that is good for business”. With the nature of our voting system, having a majority government is a big positive. However, it was felt that many of the Conservative pledges, such as increasing the personal allowance to £12,500, were made with a view to continuing the coalition. What are the chances of these promises being kept now? It promises to be an extremely interesting few months.
The IPSE also want that the “self-employed people’s” Ambassador role to grow into a ministerial position, which would increase the prominence of contractor rights. Moreover, late payments and the problems as a result are potentially going be remedied by a new business conciliation service. These are progressive suggestions that will have to be debated internally by the Conservatives.
The FCSA are in favour of the Conservatives, suggesting, “They seem to have a better understanding of our sector…but we still have a long way to go as they seem intent on penalizing the contracting community”. The latter comment is in relation to the withdrawal of tax relief on travel and subsistence (T & S). APSC will also be “pushing the new government to draw up a new regulatory framework that differentiates highly paid, highly skilled contractors from workers who are independent but “vulnerable”.
The Conservatives, in their small business manifesto, pledged to cut 10bn of red tape, remove complex reliefs and raise the National Insurance Contributions thresholds. These are measures that could certainly help the contractor sector, if implemented. There promises to be an upturn in dialogue surrounding contractor rights, especially in light of recent proposals. It is important for contractors to manage their finances accurately due to the intense scrutiny placed upon them. Check out what Gorilla Accounting can offer you on a no contract basis.
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