Year-end & cash flow

Navigating tax system greatest challenge for a third of freelancers

A third of the nation’s independent professionals have cited the demands of Britain’s complicated tax system as the biggest challenge in their working life, according to new research.

In a survey undertaken by tax advisor Qdos Contractor, Britain’s freelancers and contractors were asked of the greatest challenges of working as an independent professional.

While many had struggled to get to grips with the demands of HMRC, the most difficult aspect of surviving as a freelancer was a lack of job security, with almost half struggling to keep business stable.

For expert freelance tax guidance, take a look at FreeAgent accountant Emily Coltman’s advice articles:

• Last-minute tax-saving tips ahead of the new financial year
• Everything you need to know about your first self-assessment tax return
• don’t do a Jeremy Corbyn tackle your small business tax return now

The findings also uncovered some of the more personal challenges of freelancing. One in ten found separating work and personal life as their greatest difficulty, while five per cent struggled with isolation from working independently.

Meanwhile, six per cent cited believed aspects such as holiday planning, a lack of professional respect and unhelpful legislation as creating a tough environment for freelancing in 2017.

Commenting on the findings, Seb Maley, Qdos Contractor CEO, said greater freedom, control and independence? offered to freelance and contracted workers was often not met with sufficient job security.

However, he added that the changing nature of the jobs market, coupled with skills shortages, meant the demand for independent, flexible workers was growing.

in the past, independent workers have been able to enjoy certain, but limited tax advantages when working through their own companies, Maley said.