Which party is best for the self-employed?
IR35, Class 4 National Insurance, corporation tax if you've incorporated — the self-employed sit at the sharp end of tax policy, and the parties' offers genuinely diverge.
Where the self-employed start from
Sole traders pay income tax plus Class 4 NI (6% then 2%) with no employer pension, sick pay or holiday. Contractors through limited companies juggle corporation tax (25%), dividend tax and the IR35 status minefield. And Making Tax Digital brings quarterly reporting to sole traders over £50,000 from April 2026.
The offers, party by party
- Reform UK — the most aggressive package: corporation tax to 20% then 15%, and IR35 abolished outright — the only party proposing abolition — plus the £20,000 allowance on personal income.
- Conservatives — instinctively lighter-touch on IR35 enforcement and business taxes; no headline package matching Reform's.
- Labour — stability plus compliance: rates held, thresholds frozen (fiscal drag applies to profits too), MTD rolls on.
- Greens — their NI rise targets employees, largely sparing Class 4 — but CGT at income rates would hit business sales hard.
- Lib Dems — replace business rates with a Commercial Landowner Levy, cutting costs for premises-based traders; their CGT reform is gentler on small business sales than the Green version.
The bottom line
Contractors caught by IR35 have exactly one abolition offer on the table. Sole traders' biggest lever is the personal allowance (Reform's £20,000 helps most). Anyone planning to sell a business should study the CGT plans — the same sale can differ by tens of thousands between the Green and Lib Dem versions. Run your profits through the take-home and CGT calculators.
See every party's impact on your own numbers → · Full compare matrix →
Frequently asked questions
Which party would abolish IR35?
Only Reform UK proposes abolishing the off-payroll working rules, as part of its corporation-tax package. No other major party proposes abolition, though the Conservatives have historically favoured lighter enforcement.
Do the self-employed pay less National Insurance?
Yes — Class 4 is 6% between £12,570 and £50,270 versus 8% for employees, and there's no employer NI. The trade-off is no employer pension, sick pay or holiday. The Greens' NI rise targets employees rather than Class 4.
What is Making Tax Digital?
From April 2026, sole traders and landlords with income over £50,000 must keep digital records and file quarterly updates to HMRC (over £30,000 from 2027). It's administration rather than extra tax, but it's the biggest compliance change for the self-employed in years.