General Election 2024: Parties Urged to Shake Up Self‑Employed Tax

Why the Self‑Employed Are the Real Power‑House of 4 July

With the election date locked in for July 4th, party leaders are hustling to polish their manifestos. But they’re missing a key secret weapon: the 4.2 million people who run their own businesses, freelance gigs, side hustles, or simply prefer to bill themselves.

They’re the Underdog Crowd the Government Can’t Ignore

These self‑employed folks have been hit hard by a wave of tax raids, and that’s spurring a new demand for change. Qdos, a tax‑compliance and insurance firm that’s made it their mission to help flexible workers, has gone big on a “tax shake‑up.” Whatever that means, it’s a chance for any political party to win over a community that’s buzzing with entrepreneurship.

Fresh Ideas for an Old System

Think of it as a tax makeover: fewer compliance headaches, more support for the people who keep the economy humming from the back‑stairs. If parties aren’t ready to listen, they’d better listen soon—because those 4.2 million self‑employed workers aren’t going to wait around.

Raise the tax-free trading allowance

Side Hustles? They’re Short‑Circuiting the Tax Code…

£1,000 of “Tax‑Free” Piggy‑Bank Isn’t Enough to Hang a Self‑Employed Life on

Think you’re riding the side‑hustle wave? Grab your ear‑bud and let’s get real: the current tax‑free allowance sits at a generous £1,000 a year. In plain English, that’s barely enough to keep a single coffee stain from turning into a full‑budget saga.

Small‑scale pros tell the truth: “This isn’t a win for self‑employment.”
When you’re juggling gigs, the 10‑hour grind beats the 200‑hour grind. But that allowance won’t flex.
We expected a lofty boost for the side‑hustler, but what we got? A dull, almost apologetic stand‑by.

“More Money in Your Pocket” — the CEO’s Call to Action

«Seb Maley, CEO of Qdos, says: “Increasing the tax‑free trading allowance would give more cash to people who’ve bled hard to keep up with rising living costs.”»

His reasoning? Self‑employed folks need a lift, not a leaky tap.

Corporation Tax Stand‑Up

Under the current regime, the tax on businesses jumped from 19% to a jaw‑dropping 25%. That step up hasn’t offered much relief for the little gains of small operators.

There’s a small‑business rate that’s a dim sigh of patience, but it’s not exactly a sunrise.
Proponents have branded the 25% hike as a “regressive climb” — a steep stair for the already struggling.
The bottom line: “At least let’s talk about a rollback…” – because every penny, even a sardine‑script, matters.

On this stage, self‑employment doesn’t feel like the glittering gig of destiny; it feels more like a painful puzzle that’s too cheap to solve. The time has come for a big, bold bump in the allowance. Let’s give side hustles the boost they truly deserve!

Address IR35’s flaws

When the Work Rules Turn Cash Into Crosswalks

In a twist that feels more like a plot from a sitcom than a tax update, IR35 has handcuffed the freelancer’s freedom. The switchederoo means most contractors are forced into the payroll shuffle—snapping up a hefty 30% in sausage‑sliced deductions.

Why the New Rules Matter

Businesses now hold the torch: They decide if you’re a safe‑working contract or a misfit pull‑out. The new system gives a lot of power, but with great power comes a lot of confusion.
Tax‑time heartbreak: A 30% hit on your take‑home pay is no joke. Imagine earning $100 and walking away with just $70 after tax.
One size doesn’t fit all: The tool that’s supposed to be the ultimate decision‑maker is, frankly, a pile‑of‑junk by many.

The Need for a Fresh Look

“Revisiting the IR35 rules isn’t optional—it’s essential.”

Fairness on the line: Every business needs to do a proper, clean assessment of IR35 status.
Fixing the wheel: HMRC’s current IR35 tool is, at best, a snowglobe of errors. It’s time for a redesign.
Switching gears: Change isn’t just a tweak—it’s a full engine overhaul.

What It Means for You

Think of the new IR35 rules like a stern trainer shouting “no more freelancing drama!” The result? A payroll penalty that can turn your freelance hustle into a paycheck nightmare.

No one asked for a checkered flag in their client contracts—just a clear, honest way to navigate the tax world without being dragged into a nightmare of 30% cloaked deductions.

Increase tax-free dividend allowance

Tax Cutting: A 90% Slash for the Self‑Employed

In just seven short years, the tax bite on self‑employed sultans has shrunk by a jaw‑dropping 90%. That’s not a typo – that’s how the government has been munching on the earnings of every one‑person enterprise.

Why the Taxman’s Tickle is a Bit Too Tight

Dividends Gone Dry: The dividend allowance, once a tax‑free sweet spot, is being trimmed down with each new budget. It’s like the government is playing a cruel game of “Who Can Own More of Your Money?”
Limited Company Loot: Owners of small companies feel the squeeze. “We should be rewarded for our hustle, not robbed by a tax‑grab,” says Maley, a vocal voice from the self‑employed community.
Support Shortfall: Pandemic‑era “support bubbles” were thin, and tax raids—why should business owners feel hunted for their cash?

Maley voices the frustration: “In recent years, the self‑employed have been taken for granted, from the lack of support during the pandemic to countless tax raids. A major tax shake‑up is overdue.“

Politicians: Here’s Where the Stiff Upper Lip Stops

Election Pulse: As the general election bulbs up, political actors must stop scoffing at self‑employed concerns.
Opportunity Goldmine: The parties now have a pan of options—adjusting the tax-free dividend allowance, cutting corporate tax rates, or easing compliance paperwork.
Vote‑Winning Masterstroke: Smart leaders will turn these pain points into platforms that resonate with millions of voters. A win in the polls starts with a win for the titans of their own businesses.

“The silver lining for the major political parties is that there are plenty of options to choose from, which could make an immediate and significant impact,” concludes Maley, laying out a roadmap for the next political chapter.