pexels photo 372038

Theresa May explained that her call for an early election was due to a lack of unity amongst parliamentary parties, and that without this, Britain would not be able to achieve the best Brexit deal.

She said, “the country is coming together but Westminster is not”¦ I have concluded that the only way to guarantee certainty and security for the years ahead, is to hold this election and seek your support for the decisions we must take.”

“We have at this moment a one-off chance to get this done while the European Union agrees its negotiating position and before the detailed talks begin.”

May explained that if an election was to take place in 2020, as originally scheduled, Britain would be running against the clock which would hinder our chances at getting the best deal.

Philip Hammond, Chancellor of the Exchequer, announced in the Spring Budget 2017 that NIC for the self-employed would be increased. Hammond then made a U-turn after facing backlash from senior party members, leading him to scrap the rise to Class 4 NIC.

Last week, the government announced that the Making Tax Digital scheme (MTD) and the cut to tax-free dividend allowance, as proposed in the Spring Budget 17, has been pushed back. The measures are expected to come back into force in the early stage of next parliament.

Simon Vicker, IPSE Director of Policy, raised his thoughts on what the snap election could mean for the self-employed, in an IPSE article.

“There is the Taylor Review. This will be delayed, but not cancelled. Matthew Taylor’s recommendations may have a stronger sway with a newly re-elected Government.”

“So, the definition of what exactly self-employment is, will still be firmly on the agenda.”

“As will what rights the Government provides the self-employed, if any?”

The ongoing Matthew Taylor review will look into employment practises and will discuss the tax regime for flexible workers. The report was originally expected for release this summer, this date will most likely be pushed back.

Simon Vicker continues to discuss what changes could be on the horizon after the next general election, and in the Autumn Budget 2017.

“What about IR35? With a new mandate, will the Government be emboldened to roll out the recent public sector changes in the private sector too? Will the Dividend Tax be adjusted?”

These topics will be brought to light in the IPSE manifesto for the next government. Self-employment has been at the forefront of the political agenda and this is expected to continue into next parliament.

At Gorilla Accounting, we proactively inform our customers on upcoming legislation changes, as part of our service.

Our all-inclusive accountancy package is priced at just £85 plus vat per month. For more information, get in touch with our New Business team by calling 0330 024 0406 or email