According to new research carried out by IPSE, freelancers’ confidence levels are at their lowest ever. This research has revealed the first negative index score in relation to business confidence outlook for the next 12 months.
The survey highlighted only 28% of freelancers were confident that they expect their business performance to improve over the next year. This percentage shows a significant decrease compared to earlier this year with a decrease of 13%. The top factor for this decline was related to changes in public policy. Also, IPSE believe proposed changes to travel and subsistence tax relief, taxation on dividends and IR35 rules have contributed to this decrease.
Furthermore, 56% of survey participants confirmed they had no change to business costs over the past 12 months, although, 65% are expecting this to change, over the course of the next 12 months.
IPSE’s Chris Bryce commented:
“It is clear that freelancer confidence levels have taken a knock. IPSE is deeply concerned over current proposals for changes to travel and subsistence tax relief and more forceful implementation of IR35 – which still operates under an outdated format.”
“These changes have the potential to affect a significant driver of the UK economy and put tens of thousands of freelancers out of business. We call on the Government to rethink these proposals to restore freelancers’ lost confidence.”
At Gorilla Accounting we have structured our contractor specialist service offering around both our own experience and feedback from contractors themselves. We have devised a superior accounting product sure to enhance the accounting experience of any contemporary contractor. To join Gorilla Accounting today, and take advantage of our single, simple contractor accountancy package call 0330 024 0406 and one of our friendly team will be more than happy to assist.
