Self-employed face increased stresses with tax changes
IR35 tax changes will be introduced from April 6th meaning off-payroll workers will be treated as full-time employees with companies responsible for setting the tax status of contractors they hire. Experts warn that many freelancers are unprepared for the changes while interest in IR35 fell 71% since the Chancellor announcement last year that the tax change would be delayed due to the pandemic. Meanwhile, changes announced by Rishi Sunak on Tax Day could add further pressure to contractors with the Treasury saying they will review the feasibility of introducing a modern "pay-as-you-go" tax system. The Association of Taxation Technicians said that although some taxpayers may welcome the opportunity to pay their tax closer to real time, “a widespread move to more frequent, in-year calculation of income tax and corporation tax is very tricky to achieve.” Many motorsport businesses frequently use contractors and so will be affected by the rules.