FCSA Responds to Office of Tax Simplification Interim Report on Small Business Taxation

FCSA Responds to Office of Tax Simplification Interim Report on Small Business Taxation

Stuart Davis, Chairman of the Freelancer and Contractor Services Association, said:

"We welcome the publication of the OTS's interim report as it represents a significant step forward in the discussion around tax reform for small businesses and the self employed. It is, however, of deep concern that the recommendations display a continued lack of understanding of the flexible workforce, and in particular the consequences of combining income tax and NIC's, harmonising Corporation Tax rates, and modifying IR35 provisions. These moves may throw up barriers for the genuinely self employed and disincentivise freelancers and contractors choosing to work in this way.

“Given the vital role the flexible workforce and small businesses plays within the UK economy, FCSA is concerned that some of the report's recommendations, if followed, will cause considerable damage. We are committed to maintaining our ongoing dialogue with OTS and FCSA will assist them in any way possible."