Income tax and National Insurance Contributions should be merged, bringing about a much simpler tax system and making the abolition of IR35 possible, according to IPSE, the association for Independent Professionals and the Self Employed.
The call for a simpler structure comes just days before the Chancellor will deliver his Autumn Statement and all eyes are on him to see how seriously the government are really taking Britain’s “army of self-employed” workers.
In order for the merger to be possible an expert should examine the current tax system and come up with a feasible solution, IPSE said. In the meantime a “freelancer limited company” structure would deliver “clarity of employment status” for independent professionals and would prevent self-employed workers from being hit by costly IR35 penalties.
“Ahead of the General Election next May, the Autumn Statement presents the perfect opportunity for George Osborne to show how serious the Conservative Government is about supporting Britain’s 4.6 million self-employed people.
“The policy proposals we are recommending will deliver a simpler tax system, a flexible pension scheme, a fairer approach to training and most importantly, a level playing field for independent professionals.”