With the election looming, Prime Minister Theresa May has reiterated that her party is looking to reduce taxes levied on working families. May did not mention anything related to PSCs and contractors, and she not make any reference to the contractor dividends that have been reduced.
IT Contractors welcome May’s VAT pledge
However, May did mention that she will not be increasing VAT. IT contractors and other independent workers welcomed this news, which comes after Labour Shadow Chancellor John McDonnell surprised everyone by saying that his party will not be increasing VAT.
May had not committed to freeze VAT. However, after being questioned in a television programme, she followed the lead of the Labour Party and stated that the Tories were also not in favour of increasing VAT.
The Tories have a large support base among UK businesses, and a survey showed that UK businesses, including IT contractors and independent workers, are three times more likely to vote for the Conservatives than the Labour Party.
The poll revealed that 41 per cent of enterprises are more likely to vote for the Conservatives, compared to 13 per cent who support the Labour Party. Nine per cent of the respondents stated that they would cast their ballot in favour of the Liberal Democrats.
Many businesses are not supporting Labour as the party’s election manifesto vows to increase corporation tax by eight per cent so that it can inject about £1.5 billion into the flailing NHS.
May was quite emphatic that the Conservatives have no intention of increasing tax, and stated that the party did not want to make any proposal on taxes unless it can deliver. This is in complete contrast to what Chancellor Philip Hammond feels about the state pension triple lock, which he believes is restrictive and therefore should be amended.