Digital tax overhaul will require five returns per year

The upcoming digitisation of the tax reporting system could mean that millions have to file five tax returns a year. The overhaul, called ‘Making Tax Digital’ starts its pilot trial in the 2017/18 tax year, with people being gradually drawn into the system over the following two years. Why is tax going digital? In the ‘Making Tax Digital’ Policy Paper, H M Revenue & Customs (HMRC) states that the new system will save businesses and the self-employed time and money by keeping track of information and fixing any errors in real-time. This ...

Shock National Insurance U-turn

In a shock move, that will come as a pleasant mid-week surprise to many, Chancellor Philip Hammond has announced that the government will not proceed with the increase in National Insurance contributions for the self-employed. The main rate of Class 4 National Insurance contributions, applicable to the self-employed, was to be increased from 9% to 10% in April 2018, and then to 11% in April 2019. The pressure being applied to the government during the last week has clearly had some effect, with many saying that the increase directly broke the Conservatives’ 2015 ...

It’s a tough time to be self-employed

It’s a tough time to be self-employed 150pxAs the ‘on demand’ economy kicks in and more people become self-employed, we might be forgiven for thinking that now is a golden age for those people who work for themselves. However, new research shows this is anything but true. Lower earnings The Resolution Foundation has revealed that average earnings amongst self-employed workers are lower than they were in the mid 1990s. Their research has found that the number of self-employed workers has risen by 45% since 2001 / 2002 but their average weekly earnings has fallen ...

Self-employed? Is your family exposed?

New research has shown that millions of self-employed people are leaving their families financially exposed. Over recent years, the number of people who are self-employed has increased significantly; with nearly five million of us working for ourselves (Source: ONS). But it seems most are making no provision should they be unable to work due to illness, a decision which could have catastrophic consequences for their loved ones. The research, from Scottish Widows, found that: Only 7% of self-employed people have Critical Illness Cover to protect them, and their family, if they become ...