The government should focus on taxing big corporates rather than the self-employed, Online Mortgage Advisor’s director Pete Mugleston said.
Philip Hammond (pictured) announced controversial plans to hike National Insurance for the self-employed in Wednesday’s Budget despite the Tory manifesto promising not to raise NI rates.
Mugleston said: “If HMRC isn’t doing its job to tax companies effectively then that is another issue, one that needs addressing at highest level to recoup the billions of tax dodged by big corporates, rather than harming those lower-earning entrepreneurs that the country and our economy needs.”
Prime Minister Theresa May was forced to defend the National Insurance change after it sparked a backlash from Conservative MPs such as Iain Duncan Smith, John Redwood, Anna Soubry and Dominic Raab.
The move has now been delayed until autumn, while May said Hammond would listen to concerns over the change.
Mugleston added: “Our economy has seen an increase in self-employment for all manner of reasons, including innovation in technology and the internet revolutionising how many people live and work, as well no doubt, as a change in mindset for many ex-employees made redundant in the credit crisis who have since learned to survive on their own initiative, rather than rely on a corporate employed contract.
“One could argue that it is these people who have helped lift the country out of recession, so for the Chancellor to suggest that the self-employed are only set on avoiding tax is frankly laughable.
“Add this new NI increase to the fact that dividends for limited company directors have already suffered a tax increase, and are set to take another hit, the self-employed would be forgiven for feeling somewhat victimised.
“This push to make taxation equal just doesn’t factor in the obvious negatives self-employed people take on when they set up their own company. In equalising taxation, is the chancellor also going to pay for their time off sick, to negate the lack of employer pension, or offer job security?”