Flexible workers can look forward to the end of “complex, costly and time-consuming” self-assessment and simpler tax systems following the Conservative Party’s victory in the general election last week.
Chancellor George Osborne outlined various positives for contractors in the budget in March, while other schemes and changes were presented in the party’s manifesto in the run up to the election and last year’s autumn statement.
Many of these changes will now be pushed through as the government begins work as the majority party during its second term. Self-assessment will soon be scrapped in a favour of a new replacement system that will make it much easier for flexible workers to fulfil their income tax commitments on an annual basis.
This means that HMRC will now receive the information it requires from individuals through automatically updated digital tax accounts, while more complex tax affairs can be managed online through the individuals’ accounts.
The new system, which will be introduced from 2016, will streamline the process and workers will feel that they are paying a single business tax instead of relying on records stored over many years to complete their returns accurately.
Class 2 national insurance contributions will also be abolished during the next parliament, with a review of employment status also taking place.
Mr Osborne said earlier this year: “To support five million people who are self-employed, and to make their tax affairs