Danny McCance 8 May 2017 04:46pm

FSB warns government over taxes for self-employed

The Federation for Small Businesses (FSB) has demanded the new government not target almost five million self-employed people with tax increases

Ahead of the snap election on 8 June, the FSB has called on all parties to make a “positive commitment not to single out the self-employed for any tax rises”, it stated in its manifesto published today.

“These are the 4.8 million motivated voters who we believe are key in the coming election.”

In February, research from the FSB warned that almost one-fifth of small businesses would consider closing down or selling their business as a result of increasing business rates.

The manifesto published on behalf of small businesses outlines 30 points for the government to address after the election.

“The UK’s army of 4.8 million self-employed are the backbone of this country and should be recognised for the value they add both to the economy and their local communities” Mike Cherry, FSB national chairman said.

The FSB has called on policymakers to make a commitment to the country’s self-employed.

“There are a series of decisions required by new government ministers in their first 100 days in office.

“Our manifesto sets out what small businesses want to see from all major parties and candidates standing on 8 June. Millions of votes are at stake,” Cherry Added.

In response to the FSB’s recommendations, a Labour spokesperson stated that the party plans to “reform business rates to ease the burden on the traditional high street and create a fairer system of business taxation for all".

The party also spoke of measures to protect small businesses.

“We will reintroduce the small profit rate of corporation tax and commit to no quarterly reporting for business below the VAT threshold, giving them the certainty they need to invest,” the statement said.

Liberal Democrats shadow business secretary Susan Kramer stated, "“Our priority for small businesses is to ensure that they can operate in a conducive business environment and access the funding they need in order to start up, scale up and compete."

The Conservative party has also been contacted.  

The government faced embarrassment in March after chancellor Philip Hammond was forced to reverse plans to increase National Insurance contributions for self-employed workers.