Self-employed contractors unimpressed by Budget

Posted On: Mar 29th, 2011 Under: Contractor Tax, Freelance Contractors, Contractor Limited Company, Sole Trader

Many amongst the UK’s self-employed contractors are distinctly underwhelmed by the Chancellor’s budget, according to a new poll from the Federation of Small Businesses (FSB).

The survey sampled 800 small firms and discovered that over half of the respondents believe that the Budget will have no impact at all on their day-to-day business prospects. Just 31 per cent of those polled think that the Chancellors plans will have a positive effect.

While 42 per cent believe that they will be no worse off as a result of the Budget, they also believe that they will be no better off, either.

However, the Chancellor got the thumbs up in the poll for some of his measures, including the increase in approved mileage allowance, the freeze on domestic regulations and the decrease in corporation tax. He can also draw comfort from the relatively low number of respondents (18 per cent) who thought the Budget would have a negative effect on the economy. By contrast, 39 per cent believed the economy would be strengthened by the Chancellor’s measures.

FSB’s Chairman, John Walker, praised the Chancellor for delivering a broadly pro-business Budget and for listening to some of his organisation’s concerns for small businesses, which include limited company contractors. He applauded the decision to scrap the planned 1p rise in fuel duty and the escalator, as well as extending small business rate relief. However, he also maintained that the Chancellor had not done enough to help small businesses grow and take on new staff.

Many in the freelance contractor community will endorse his suggestion that the Chancellor could easily have extended the national insurance holiday to micro-businesses, a measure which would have had a palpably positive effect.

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