Self-employed and creative industries hit hardest by tax changes
Recent changes to the tax laws have taken the self-employed by surprise leaving many facing huge bills and fines - often pushing them into serious debt.
Advisors from the insolvency department of Levy Gee have warned that those particularly affected are from the creative industries.
Insolvency practitioner Steven Billot said: ‘Although tax changes have been well documented, many people haven’t grasped the full implications. As a results they are facing bills for this year, and next, which they haven’t accounted for.’
Many smaller companies and individuals are facing bankruptcy as the Inland Revenue hits them hard with high rates of interest, and in some cases, legal action.
‘A lot of the problems seem to stem from freelance people who are not used to a business environment. Often musicians and actors are the worst culprits for considering their tax liabilities,’ Billot added.