Business News

Osborne 'sleep walking into catastrophe'

The managing director of Danbro, an accountancy firm specialising in freelancers, has accused George Osborne of “sleepwalking into a catastrophe” over the proposed clampdown on travel and subsistence.

According to Damian Burroughs, the Chancellor’s plans to scrap tax relief on travel expenses for self-employed contractors will cost the UK’s 1.6 million contractors £16.6bn, an average of £200 a week.

“The government is quite rightly aiming to crackdown on tax avoidance but this move is at best, misguided, and at worst, completely counter-productive for the UK economy,” said Burroughs. “Contractors are a vital resource of skills for thousands of UK businesses and waging war on this sector for a £265m return to the taxman is short-sighted.”