We had it all written out. A blog post explaining how the spring budget would affect freelancers, sole traders, property owners and contractors. Full of advice that’d get you through the next tax year.
And then the PM went and called a General Election.
Once that happens, all the details of the spring budget will change. So, if you want to prepare for the tax year ahead, you need to be flexible and adaptable. Because depending on who wins, different things could happen.
Here’s what the runners and riders say would happen to tax if they win.
Labour (Currently ahead in the polls)
Labour are running on ten key policies that mainly focus on the NHS, energy bills and the school system. Changes to the minimum wage won’t affect the rates freelancers can charge, and nor will closing VAT loopholes for private schools (there are very few freelance private schools).
If you’re working in the UK put have non-dom status, Labour is planning to tax your overseas income, which would need to be accounted for in your tax returns, but the party has vowed not to raise rates of income tax or corporation tax, which is good news for sole traders and small limited companies.
Conservatives (Currently trailing in the polls)
For the Conservatives, expect more of the same. A quadruple lock on pensions would mean that the threshold for paying any income tax would rise slightly in line with pensions, but the biggest change would be the axing of all social security contributions from workers “in the long term.”
The long term here would mean the next decade or so, although if the Conservatives remain in power, the spring budget’s drop in NI contributions from 12% to 8% could be mirrored with a further drop in November.
With the self-employed paying as little as £3.45 per week in National Insurance contributions, this will have a far smaller financial benefit to you than switching from an expensive accountant to a simpler, easier tax return service like Penny Ledger.
Liberal Democrats, Green Party, Reform UK and others (Unlikely to form the next UK government)
The chances are that either Labour or the Conservatives will form the next UK government. But just in case there’s a coalition on the cards, here’s what the other parties have to say:
Liberal Democrats
The Green Party
Reform UK
The Scottish National Party
Count Binface
Whatever the future holds, we have the know-how to make sure your tax returns are filed correctly so you’re not at risk of fines and overpayments. Isn’t it time you got started with us?