Exploring Tax Cut Feasibility, IFS Offers Insights

FutureLink provides comprehensive payroll solutions including Umbrella Payroll, Umbrella PAYE, CIS Payroll, Self-employed Payroll, Tax-Efficient Payment Solutions, PAYE Payroll, and IR35 Compliant Solutions

With the UK tax burden at a record high, could promised tax cuts in 2025 bring relief for contractors, or are they too good to be true?


At Futurelink Group, we know contractors are eager for clarity on how tax changes could impact their take-home pay. As the Institute for Fiscal Studies (IFS) warns of limited scope for tax cuts, we break down what this means for you and how we can help you stay compliant and financially efficient.

Key Areas We Will Cover:

  • Who we are at Futurelink Group and our role in supporting contractors
  • The IFS’s insights on the feasibility of tax cuts in 2025
  • How tax changes could affect contractors and freelancers
  • Practical steps to maximise your earnings amidst tax uncertainty
  • Why we’re your trusted partner for navigating tax and payroll challenges

Introduction:
As contractors, you face unique financial challenges, especially with the UK’s tax burden at its highest in decades. Recent reports from the Institute for Fiscal Studies (IFS) highlight that promised tax cuts in 2025 may be difficult to sustain due to economic pressures and high national debt. At Futurelink Group, we’ve been supporting contractors for 28 years with compliant payroll and accountancy solutions. This guide explores the IFS’s findings, what they mean for you, and how we can help you navigate tax changes to maximise your earnings.

Who We Are at Futurelink Group

Since 1996, we’ve been a leading UK-based provider of payroll and accountancy solutions, serving contractors, freelancers, and agencies worldwide. With a 4-star Trustpilot rating and full compliance with HMRC regulations like IR35 and CIS, we offer:

  • Umbrella PAYE: Hassle-free payroll with included insurances and compliance.
  • CIS Solutions: Tailored payroll for self-employed construction workers.
  • Limited Company Support: Expert accountancy for PSCs, VAT, and tax planning.
  • International Payroll: Multi-currency payments and multilingual support for global contractors.
    Based in Kings Langley, Hertfordshire, our multilingual team (fluent in Romanian, Italian, Spanish, Polish, and English) processes daily payrolls, ensuring timely payments and exceptional service. We’re here to simplify your financial management so you can focus on your work.

IFS Insights on Tax Cut Feasibility in 2025

The IFS has raised concerns about the feasibility of tax cuts in 2025, citing:

  • High National Debt: The UK’s debt is at its highest level in over 60 years, limiting room for tax cuts or spending increases.
  • Economic Challenges: Weak growth, high inflation, and rising debt interest costs create a “horrible fiscal bind,” with the IFS warning that tax cuts may need to be reversed post-election.
  • Frozen Tax Thresholds: The six-year freeze on income tax thresholds, set to raise £52bn annually by 2028, effectively increases taxes as inflation pushes more contractors into higher tax bands.
  • Spending Pressures: Commitments to NHS, defence, and childcare spending require an additional £20bn, potentially forcing cuts to other services or tax rises.

While Chancellor Jeremy Hunt’s £10bn National Insurance cut in 2023 benefited 27.6 million workers, the IFS notes that frozen thresholds offset much of this relief, leaving many contractors worse off. We understand these complexities and are here to help you navigate them.

How Tax Changes Could Affect Contractors

Tax changes have a direct impact on your earnings as a contractor. Here’s what we see as key concerns:

  • Fiscal Drag: Frozen tax thresholds mean more of your income is taxed at higher rates as your earnings rise with inflation. For an average earner (£35,000), the net tax cut from National Insurance reductions is only £140 by 2027–28 after threshold freezes.
  • IR35 Compliance: Off-payroll working rules remain critical, requiring accurate status assessments to avoid unexpected tax liabilities.
  • Capital Gains Tax (CGT): The IFS suggests aligning CGT rates with income tax rates to boost revenue, which could increase taxes for contractors operating through limited companies.
  • Self-Employed Challenges: The IFS notes that much of HMRC’s tax shortfall comes from self-employed individuals and small businesses, increasing scrutiny on contractors.

Our team at Futurelink Group stays ahead of these changes, ensuring your payroll and tax strategies remain compliant and optimised.

Practical Steps to Maximise Your Earnings

We’ve helped thousands of contractors navigate tax challenges. Here are our top tips:

  • Review Your Tax Status: Work with us to ensure IR35 compliance and avoid unexpected tax bills.
  • Claim Allowable Expenses: As a self-employed contractor or PSC, maximise deductions for legitimate expenses to reduce your tax liability.
  • Use Our Payroll Solutions: Our umbrella PAYE and CIS services simplify compliance and include insurances, saving you time and money.
  • Plan for Fiscal Drag: Budget for higher tax contributions due to frozen thresholds and consult our experts for tax-efficient strategies.
  • Stay Informed: Use our online portal and live chat for real-time updates on tax changes and their impact on you.

Why We’re Your Trusted Partner

At Futurelink Group, we’re committed to supporting contractors through uncertain tax landscapes. Here’s why you can rely on us:

  • Close to 30 Years of Expertise: Our proven track record ensures reliable payroll and compliance solutions.
  • Multilingual Support: Our team speaks multiple languages, making communication seamless for international contractors.
  • Award-Winning Service: Recognised for innovation at the 2019 British Accountancy Awards.
  • Transparent Pricing: No hidden costs, with insurances (Personal Accident, Employers Liability, and Public Liability) included.
  • Client Praise: Contractors commend our team, including Karen Dodd and Cristina Ferecatu, for their professionalism and promptness.

We process payrolls daily, including twice on Fridays, to ensure you’re paid on time, every time.

Conclusion

With the UK facing economic challenges and a record-high tax burden, promised tax cuts in 2025 may not deliver the relief contractors hope for. At Futurelink Group, we’re here to help you navigate these uncertainties with tailored payroll and tax solutions. Our 28 years of expertise, multilingual support, and commitment to compliance make us your ideal partner for maximising earnings and staying ahead of tax changes.

Partner with Us for Financial Confidence


Ready to tackle tax changes with ease? Let us handle your payroll and compliance needs. Contact us at +44 (0) 1923 277900 or email sales@futurelinkgroup.co.uk to explore our services. Visit www.futurelinkgroup.co.uk for free contractor resources and expert advice.

Picture of Craig Moss

Craig Moss

Craig Moss is a seasoned professional in the employment and recruitment industries, based in Kings Langley, UK. With over 30 years of experience, including a successful tenure as a central London realtor handling properties up to £3 million, he now leads an exciting management role at Futurelink Group. Specialising in compliant payroll solutions for contract recruitment, Craig helps clients increase margins by up to 30% while navigating complex legislation. His people-focused approach, honed through decades in sales and people management, ensures both recruiters and workers benefit from tax-efficient, compliant solutions. Passionate about building strong relationships, Craig thrives on delivering results that drive business success.

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