There is an amendment to the Coronavirus Bill, proposed by the Lib Dems, which would create “statutory self-employment pay” at an average of the last three years’ net profit, OR £2917 per month, whichever is lower. The government didn’t adopt the amendment, but it shows the kind of thinking that’s going on. You can read the proposal on page 14 of the amendments document:
The COVID-19 pandemic has applied an unexpected stress test to parts of the way we earn and pay our taxes. And the system is showing its flaws.
It’s not surprising that the UK government first came up with a plan for supporting businesses to support their employees. Businesses hold all the information needed to push finance down the pipe into employees’ bank accounts. They also (in theory) have a moral duty to support their staff.
But the system for people who don’t fall into this earning category is more messy. Different words are used by people to describe themselves: freelancer, self-employed, sole trader, contractor, interim.
[Updated on 16 December 2019, after the election results.]
This blog was put together to look at the implications of the main UK-wide party manifestos for freelancers, small companies and other tax payers.
The video explainer below shows aspects of the three manifestos. I thought I’d leave it there, even though we now know it’s the Conservatives who won – big time.
In fact the Conservative manifesto was the one with the least detail. (Some would argue this is why they won.) But we can expect a Budget announcement from the Chancellor of the Exchequer in February 2020. I will post again to highlight details as they emerge.
Of course the one thing that will happen is that we will leave the EU at the end of January 2020. We will then enter a ‘transition period’, initially set to run out at the end of December 2020.
Nothing changes in terms of movement of goods, rules about freedom of movement, and working, etc, until the end of the transition period.
Update November 2019: You can watch my 20 minute presentation about no-deal Brexit and freelancers courtesy of AudioUK – recorded 25 October 2019: David’s presentation on Vimeo >
Have you got ready for Brexit yet? Nope – me neither. Because no one knows (at time of writing) what Brexit will look like.
However, there are some things you should think about in preparation for ‘getting ready for Brexit’. Some of it won’t cost any money, and will mean you are less likely to be caught on the hop if and when we leave the EU.
This will be particularly important if we leave in a sudden ‘crash out’, no-deal, WTO-type scenario. [Update 16 Dec 19: this could still happen at the end of December 2020.]