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The 2010 Manifestos: What's in it for freelancers?

All three include proposals which might affect freelance workers, regarding taxation, procurement, and regulation.

In terms of their general approach Labour’s “a future fair for all”, is probably the least radical of the three, with few major policy announcements. The Conservatives opted for an unusual hardback, sober design, with the title “Invitation to join the Government of Britain”, with radical proposals on tax simplification. The Liberal Democrats meanwhile combined both Labour and Conservative approaches in emphasising “fairness” and “change”. They also outlined hugely radical proposals for the tax system. Below PCG outlines the key messages from each manifesto, identifying the points of primary interest to freelancers.

LABOUR: “A future fair for all”

  • Key message in this manifesto is “fair taxes” and “cuts to lower priority spending”
  • Businesses are recognised in the manifesto: “The engine of growth is private enterprise. We will give businesses our full support in creating wealth and jobs”
  • National Insurance will rise by one penny in 2011. For freelancers working through their own limited companies, this change may not affect them. Many pay themselves a salary at a level which does not require them to pay any national insurance. This change “will not affect those earning less than £20,000.
  • There is a commitment not to increase further any rates of income tax
  • VAT will not be extended to current zero-rated items, e.g. food, public transport fares, etc.

CONSERVATIVES: “Invitation to join the future Government of Britain”

  • “A Conservative Government will take action now to cut the deficit”
  • The one penny rise in National Insurance proposed by Labour will not be supported by the Conservatives
  • “Business Investment must replace reckless spending as the foundation for growth”
  • Heavy emphasis on business and support for businesses of all sizes. 
  • There is a firm commitment to improve Britain’s international ranking/reputation for tax competitiveness and international regulation.

LIBERAL DEMOCRATS: “Change that works for you, building a fairer Britain”

  • The Lib Dem’s headline policy is to propose that no income tax is paid on the first £10,000 earned.
  • Capital Gains will be taxed at the same rate as income
  • The Lib Dems commit to “new powers for HM Revenue and Customs”
  • They also commit to “tackling tax avoidance and evasion”

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