The 2012 Budget Is Nearly Here

It has been a really tough year for the UK economy. Unemployment has increased, inflation is still a huge problem for people and pay increases are a dim and distant memory for most employees. Just how quick have those years since 2008 gone, it really has been a blur? Amongst all the doom and gloom the contractor market has stood up well though. As employers look to lower their long term risk by hiring “staff” on shorter contracts the sector has seen little if any decrease in demand, rates of pay are still good and contractors are now seen as a vital part of the UK economy. Vital AND valued, well that remains to be seen.

Will this all be reflected in the 2012 budget though? Will we see incentives for more people to shoulder the burden of risk, to take that same risk away from employers? What will the UK government do to help freelancers and contract workers? The majority are after all small business owners and if you belive the rhetoric the news should be good.

On the other hand each successive budget seems to come with attached legislation that makes working for yourself even more of a chore. Whether it is proving that you are actually working independently or not (as the case may be) or ever tightening rules on what is and isn’t an allowable expense. It has got harder to go it alone.

One thing is for sure and that is that budget day is watched even more closely by the contractor community than the general public as a whole. It takes days for the real devil in the detail to be filtered out of the small print, lets all cross our fingers for a contractor friendly budget this time around.


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