Higher self-employed tax will have “huge impact” on Dorset business

Loading the Elevenlabs Text to Speech AudioNative Player...

A photograph of local businesses in the Moordown area of BournemouthThe Chancellor’s budget announcement today will have a “huge impact” on businesses in Dorset, a local consultant has said.

Matt Desmier, who works with Bournemouth Council to support local business, says a rise in tax for the self-employed will negatively impact Dorset’s economy.

“The creative and digital economy – which is the fourth largest economy in Bournemouth – is predicated on a lot of freelancers and sole business owners that create a supply chain,” he said.

“It’s going to impact students coming out of the university who become freelancers, large organisations’ prices will go up, and then ultimately it’ll have a negative impact on the brands that then employ those agencies.”

The tax rises were announced earlier today as part of Chancellor Philip Hammond’s first Spring Budget.

Class 4 National Insurance contributions for the self-employed will increase from 9% to 10% in April 2018, and 11% a year later.

“There are 400 small creative agencies [in Dorset] – about 70% of those have less than five employees. And a huge amount of those are sole traders,” said Matt.

“If their tax contributions are going up, the knock-on effect to other businesses could be quite dramatic.”

 

Find out more about the Spring Budget

Total
0
Shares
Leave a Reply
Related Posts

Poole RNLI: Busy 2011

Poole RNLI Lifeboat volunteers carried out around 140 call-outs in 2011, making it one of the busiest lifeboat stations in the South West. Over 2000 people were saved by lifeboat crews and lifeguards across the area in 2011.
Read More