Experts React To Autumn Statement:
Self-Employed benefits and significance for the courier industry
Self-Employed Courier Drivers Benefit From Tax Cuts
UK courier drivers working for themselves could potentially earn an extra £350 per year following the latest tax cuts.
This exciting news comes as the recent Autumn Statement highlights benefits specifically designed for the 4 million self-employed individuals in the country.
Both self-employed tax specialists and courier experts are thrilled with this development, especially considering the ongoing driver shortage crisis in the logistics industry.
In his speech, Chancellor Jeremy Hunt emphasised the importance of supporting small businesses to boost the local economy, making tax cuts a widely welcomed move in the problem-plagued industry.
“The measures outlined in the Autumn Statement provide much-needed financial relief; however, we are still needing more incentives for individuals to join the self-employment sector. This will help address the driver shortage issue but also fuel the growth of the industry as a whole,” said industry leader and Pegasus Couriers director Phillip West.
Self-employment offers attractive benefits, particularly for those who value flexible work and independence. However, there is often confusion about what self-employment actually means for individuals in our industry. “Our recruitment team has noticed that many are drawn to self-employment, especially for seasonal work, as a means to navigate between industries. While some have returned to their pre-pandemic jobs and others prefer the courier industry, we still face significant shortages,” West added.
The Autumn Statement highlighted that a self-employed person earning around £28,000 per year could save an average of about £350, equivalent to around £30 per month.
UK Tax specialist firm With Wise spokesperson Darryl Oung
welcomed the news but emphasised that more needed to be done to benefit the
self-employed, especially in the long term.
Wise specialises in the self-employment sector, particularly
within logistics and the courier industry. Their platform is used by over 250
logistics firms and more than 14,000 self-employed drivers.
“The Class 2 cut and Class 4 reduction in national
insurance will undoubtedly put more money in the pockets of the self-employed.
However, we must continue to push for additional measures to address the driver
demand issues and attract more individuals, including drivers, to explore the
world of self-employment,” Oung added.
The Association of Independent Professionals and the Self-Employed (IPSE) welcomed the tax cuts but cautioned that more action is required. Similarly, the Federation of Small Businesses (FSB) Policy Chair, Tina McKenzie, expressed satisfaction with the changes as they align with their long-standing campaign efforts.
Key changes and general information for self-employed individuals:
- Class 2 national insurance will be scrapped from April 2024, saving the average self-employed person 192 a year.
- Class 4 national insurance will be reduced from 9% to 8% on profits between 12,570 and 50,270.
- These changes will result in an average total saving of around 350 for someone earning 28,000 a year.
- The government aims to reform and simplify the taxes paid by the self-employed.
- The government aims to reform and simplify the taxes paid by the self-employed and employees.
- The changes for self-employed individuals and employees will come into effect at different times (April and 6 January, respectively).