Autumn Statement brings good news for contractors
Despite weeks of speculation, concern and calls for clarification, the Chancellor’s Autumn Statement has proved considerably less controversial than many people were expecting. Many experts were worried that George Osborne was going to unveil plans which would mean that Personal Service Company contractors were obliged to go onto their clients’ payroll if they worked for them for more than a month. Many contractors expressed concerns about what effect such a move would have on the flexible workforce and there was vocal opposition to such a move on the part of a number of organisations.
The news comes despite a leaked proposal, the veracity of which was widely reported to have been confirmed by HM Revenue and Customs this week, which seemed to suggest that the plans would definitely be going ahead. Contractors are relieved to hear that the suggested plans will not be implemented in April 2016 as had previously been feared, and heartened that the lack of an announcement in the Autumn Statement might mean that any such plans have been shelved indefinitely.
The Chancellor did reiterate the newly imposed restrictions on travel and subsistence relief which did not come as news to those who will have to change the way they work, and has already been widely debated amongst those who represent contractors and other affected individuals.
While the imminent concern about changes to the way PSC’s are able to operate, it is likely that there will be some updates on IR35 following the closure of the legislation’s discussion document in September, but HMRC report that they are still in the process of considering the responses collected. With an estimated 160 written responses submitted to the department and 14 roundtable events designed to provide them with feedback from stakeholders, there is still no word on when a workable solution to the current problems with the legislation might be announced.
Any contractors who want to know more about any aspect of contracting will find our guide to IR35 a valuable resource, and contractors’ guide to expenses provides plenty of information about what can and cannot be claimed. Anyone still in the process of considering a career as a contractor can use our take home pay calculator to work out how much they would be earning.
For more information about how the government’s plans could affect contractors, support in working for yourself and advice on how to maximise your income, call one of our friendly team today on 01442 275789 or email firstname.lastname@example.org to speak to one of our expert accountants about your needs.