With the Autumn Statement approaching, newly-appointed Crunch Ambassador Jason Kitcat writes to the Chancellor to highlight the effects proposed changes will have on freelancers, contractors, entrepreneurs, and small businesses.


Dear Mr Osborne,




Before you make your final choices ahead of the statement of 25th November, I am writing to you on behalf of the 8.4 million people who work in UK micro-businesses.

We know you and your colleagues in government recognise the huge importance to our economy of business innovation and growth. To that end we believe the decisions you announce on 25th November should seek to reinforce and support the UK’s dynamic micro-business sector. This is a sector which far outpaces its equivalents in European and North American countries.

The business success stories of tomorrow can only be built by launching ideas and skills as new companies, who almost always will start out as micro-businesses. We hope you agree that restricting the flexibility of micro-businesses through excessive regulation and restrictive tax rulings damages our economy’s ability to innovate and grow.

Rather than placing a “1 or 2 month rule” onto freelancers and contractors before they are shunted into the payroll tax system, we believe the current freedoms and flexibilities should be retained. Simplification of the current IR35 rules, rather than broadening them, coupled with adequate HMRC resourcing would lead to more success in catching the minority who are evading tax. We also believe that greater emphasis needs to be placed on prosecuting large-scale, high-value tax evasion by multinational corporations and individuals.

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We also hope that in your statement you will adopt our recommendation to protect the smallest business owners from the April 2016 dividend tax increases. This could be done with a straightforward three year transitional credit for those recording pre-tax profits below £50,000.

Record numbers of people are working for and starting micro-business in the UK. They are a great British success story and we hope you will be cheering them on as you announce your Autumn Statement on 25th November. Certainly they will cheer you on if you give them the tools and support to keep flourishing.


Yours sincerely,

Jason Kitcat
Micro-business ambassador, Crunch
18th November 2015