Simon Mcvicker

The Chancellor must not betray business with another attack on the self-employed

The Conservatives used to be known as the party of business. Theresa May still seems to be trying to keep up the pretence, saying in her conference speech that the Conservatives are ‘a party that believes in business’. But the proof is in the pudding, and this pudding is turning sour. Fast.

The Budget rumour mill is in overdrive that Chancellor Philip Hammond will use the Budget to extend the government’s disastrous changes to self-employed IR35 tax law from the public sector to the private sector. However Theresa May’s speechwriters may spin this, it would be the final nail in the coffin of the Conservatives’ small business credentials.

Let me explain. IR35 is essentially a tax law introduced to stamp out ‘disguised employment’. In essence, if HMRC believes a self-employed person is not really what they say, it can tax them like an employee – but without any of the benefits.

Comments

Join the debate for just $5 for 3 months

Be part of the conversation with other Spectator readers by getting your first three months for $5.

Already a subscriber? Log in