Contractors’ contribution to UK economy proved with record tax yield
Groups that represent the interests of the flexible workforce have long been seeking to highlight the fact that those who work for themselves are making an unparalleled contribution to the ongoing economic growth in the UK. This has been borne out by the recent news that there has been a record rise in receipts which has seen even the most generous predictions made by the government’s forecasters.
Recently released figures show that HM Revenue and Customs received £515.3 billion in taxes in the year 2014-15, in comparison to the previous year which saw a yield of £493.6 billion, representing a 4.4% rate of growth. This was largely due to a surge which occurred between April and July, during which time the Exchequer saw more money coming in than even the Office of Budget Responsibility had predicted for the whole financial year.
July also saw a record high for monthly tax receipts meaning that the UK has seen its first surplus on public finances for three years. A number of firms have paid their first instalment of corporation tax, as have millions of self-assessors which have combined with lower rates of borrowing amongst local and central government to bring about a stronger economic position than the country has seen for some time.
David Kern, the British Chamber of Commerce’s chief economist is keen to encourage the Chancellor to respond to this news by boosting growth. He believes that this should take the form of investment in infrastructure and increasing the rate of exports, both of which are vital in order to sustain the current level of growth over the long term.
The Chancellor is also pleased, stating that the latest figures show that the recovery is well-established and that that deficit has been more than halved in recent months, although he is at pains to point out that the hard work is far from over.
If you want to know more about your position with regard to contractor tax or work out what your take-home pay could be as a contractor, then our handy guides can help you to ensure that you have a full understanding of what’s involved. We can also offer advice on a range of other aspects to working for yourself such as the pros and cons of going limited.
If you want to ensure that you are paying the right amount of tax at the right time and avoid worrying about deadlines then using our team of specialist accountants could take the worry out of your finances for good. Call today on 01442 275789 or email email@example.com.