The Association of Independent Professionals and the Self-Employed (IPSE) has said that the snap general election could bring major changes for contractors, regardless of who occupies number ten.
This warning is from IPSE Deputy Director of Policy Andy Chamberlain, who said that the public sector IR35 reforms could be extended to the private sector. There could also be a radical response to the issues that surround employment status.
Chamberlain said: “It’s clear there is a concern about taxation and different forms of working, and the next Government will want to address these issues one way or another.
“If the Conservatives form the next government as many predict, a lot will depend on how many seats they pick up. If they win a larger majority, they may feel they can be more radical in their response. If the majority remains relatively small, they may be less likely to make decisions that some would consider controversial.”
It should not be forgotten that a recent report from the Institute for Fiscal Studies said that the government needs to make £15 billion in either cuts or tax rises if it wishes to clear the deficit by 2022.
Although the Conservatives are the bookies’ favourites to win the election, the Labour Party may not do as badly as expected, and the Liberal Democrats may also pick up seats.
With 4.8 million people in the UK being counted as self-employed, which constitutes 15 per cent of the workforce, the self-employed may be courted by the major parties with policies that are particularly targeted at them.