By Daniel Hunter
Freelancers in the UK have reported record confidence in the economy and their business, despite rising costs, according to the Association of Independent Professionals and the Self Employed (IPSE).
IPSE found that 41% of freelancers are confident in their business performance improving in the next twelve months, versus a quarter (25%) who are not confident. This continues a positive trend witnessed in surveys from previous quarters.
While confidence remains high, freelancers also report rising business costs, with nearly half (46%) expecting their overall costs to rise in the next 12 months. IPSE fears a number of measures announced in the Budget, from increased taxes on dividends, reduction in the number of businesses that can claim travel and subsistence costs and potentially toughening up of IR35 tax regulations could all push business costs even higher.
IPSE Chief Executive Chris Bryce, said: “It’s great to see people who work for themselves are confident in their business prospects even as they report their business costs increasing. We’re very concerned that the tough measures outlined in the Summer Budget will push costs up to the extent that many freelancers will reconsider their line of work.”
“The UK needs a robust, confident self-employed community to give our labour market the flexibility it needs to compete in a global marketplace. The people who take the risks associated with self-employment need to be supported in their endeavours.”