Calls to increase VAT threshold

The Association of Independent Professionals and the Self-Employed (IPSE) has called on the Chancellor to increase the VAT threshold from £85,000 to incentivise self-employed workers.

The plea was issued in response to a government consultation on the VAT threshold.

This consultation was opened after the Office for Tax Simplification (OTS) suggested that the threshold should be lowered significantly to £26,000 - the UK’s national average wage.

Was the budget kind to the self-employed?

Having been battered by some recent budget statements, contractors and other self-employed workers might have had a sense of foreboding as Philip Hammond stood to deliver his budget speech to the Commons yesterday.
Rumours circulating in the run-up to budget day didn’t help matters. It was widely reported that the Chancellor could extend public-sector IR35 compliance rules to the private sector and it was rumoured that the VAT threshold could be lowered.