Yesterday’s pre-Budget statement represents a ‘missed opportunity’ for Britain’s flexible workforce, according to Martin Hesketh, managing director of contractor accountants Brookson.

Brookson says: “It is fair to say that the 2009 pre-Budget report has been another missed opportunity for the flexible workforce. Initially, there seems to be very little in the report which supports self-employed professionals. Yet again this shows the failure of the government to recognise the value of this population as the economy strives to recover from the recession.

“A number of provisions have been announced to support a number of key industries, including digital, bio and low-carbon technology, to help generate both growth and revenue over the coming years. This can be seen as a potential opportunity for those operating within these sectors, which are heavily populated by self-employed professionals. 

“Additionally, the deferred increase in corporation tax and extension of the ‘Time to Pay’ scheme may also go some way to appeasing hardworking UK SMEs.

“On a cautionary note, within his speech the Chancellor did refer to implementation of further tax anti-avoidance measures and changes to ‘tax deductible items’, but further information has yet to be provided to fully explain these.

Damian Broughton, managing partner at specialist contactor and freelance accountancy firm Danbro, says: “This pre-budget report is going to be a relief for contractors who feared that the Chancellor would hit them hard in the pocket.
 
“It has been good news for limited company contractors, with Alistair Darling announcing that the proposed 1p rise in corporation tax is to be deferred.

“In fact, only the very highest earning contractors are likely to be significantly affected, with the top rate of tax for people earning more than £150,000 rising to 50% as of April next year.”

Philip Park, chief executive at umbrella company Sombrilla, says: “The announcement on increasing NICs is going to affect everyone. Some contractors and freelancers may decide they want to incorporate rather than be part of an umbrella company, as this may make savings for them in the future - but as the second rise is set for after the general election it is not yet set in stone.

“This has been a very middle-of-the-road pre-Budget report where contractors are concerned, with only the very highest earning contractors likely to be drastically affected.”