AN OPEN LETTER TO THE CHANCELLOR FOLLOWING YESTERDAY’S BUDGET
By Email: firstname.lastname@example.org
9th March 2017
You expressed in your Budget speech yesterday about the need to redress the unfairness between the employed and self-employed by raising the Class 4 National Insurance rate. You justify this by stating that “ Employed and self-employed alike use our public services in the same way, but they are not paying for them in the same way” and “Historically, the differences in NICs between those in employment and the self-employed reflected differences in state pensions and contributory welfare benefits”.
Both of these comments are correct but in your speech you forget to also say “Self Employed people don’t get 28 days paid holiday per year” and “Self Employed people don’t get Statutory Sick Pay” or how about “Self Employed people don’t stop work at their appointed time and go home”.
In your fight for fairness, did you take into account any of the above? Fairly obviously the answer was NO because had you, you would have realised that the unfairness is levelled at the Self Employed, NOT, the employed.
You use the example of someone earning £32,000 who will pay £6,170 employer and employee NI. The employed person receives £2,454.79 per year in holiday pay, the Self Employed get nothing. On that salary, the Self Employed person will pay about £2,300 in National Insurance but now add in the holiday pay the employed person gets and the difference is only £1,945.21 not the “significantly less than half as much” you mentioned in your speech.
Now take into account the employed person goes home after a hard day’s work and puts his feet up and most likely will of course normally only work 5 days per week. The Self Employed person gets home from work and then starts work on all the “other” things they have to do. Book keeping, quotes, invoices, chasing for payment, ordering materials for the next day, VAT calculations and Tax Returns and lots of other jobs for which they get paid NOTHING.
As someone who has told the country yesterday “There are many good reasons for choosing to be self-employed or working through a company. Indeed, Mr Deputy Speaker, I have done both in my time!” YOU will be aware of all the above facts, yet you still continue to “batter” the Self Employed.
FAIRNESS works BOTH ways.
D C Thewless FCPA
Figures Accountancy Services