Four in five freelancers believe that Government tax policies are harming their businesses.
A survey of nearly 600 freelancers also suggested that more than half of freelancers are less confident about their businesses’ prospects over the coming year than they were in the past 12 months.
The findings, published by IPSE – the self-employed association – found that 54% of freelancers are now less confident in their own businesses for the next 12 months compared to the previous year, with just 21% reporting that their confidence had increased.
Four in five (79%) cited Government tax policy as having a negative impact on their business, outranking economic concerns as the top factor affecting business performance.
The survey is the latest edition of IPSE’s quarterly Freelancer Confidence Index for Q2 2024. Run quarterly, the index has tracked freelancers’ attitudes to the performance of the economy and their businesses for over a decade.
Meanwhile, just under half (48%) of freelancers reported having less confidence in the UK’s economic outlook for the coming year compared to the past 12 months – down from 63% in findings from Q1 2024.
IPSE’s Director of Policy Andy Chamberlain said:
“For the past two years, the impact of record high inflation has been the main story in the business world. But for millions of freelancers, who are our very smallest businesses, the biggest barrier to growth has always been the tax system.
“This is about more than just rates of tax. Convoluted tax rules like IR35 are crushing freelancers and the businesses they’ve worked so hard to build.
“Rachel Reeves faces her first big test as Chancellor with a Budget in October and has made no secret of the need to raise money. But freelancers will be hoping that the Chancellor is also open to building a fairer, simpler tax system for millions of sole proprietors going it alone.”
