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U turning – cos this is not a U turn.

by Colin McNally in Articles

Well there you have it £2bn U turn  - as they say a week is a long time in politics.

The idea of fairness in the tax system was not shown last week. For those who are self-employed who do not get the same SSP, MP, holiday pay, etc etc setting NI at the same level as an employed person was not fair and not correct.

If the NI goes up the benefits to the self-employed must reflect that increased cost.

I think that the economic shift to people being self-employed is a change which is impacting the tax take. However a blanket NI change is not the answer. Faier would be to segregate those who are truly self-employed and those who are basically forced into self-employment by large business. That way you tax the business rather than the individual. More administration but a lot less impact to those striving to work on their own.

If only a similar consideration could happen and reverse the dividend tax. Again this is not a fair tax it is an easy tax. However again there are those of us who are genuinely building up business and others who are individuals consulting into large corporations. Again target the corporation not the individual.

If he can do one u-turn, it shouldn’t be that bad to do a second. However I doubt that will happen.

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