Contractor News Roundup: July 2020
March brought a whole host of changes for contractors. Here’s a rundown of some of the key news stories from the last month.
The Coronavirus Job Retention Scheme will cover limited company contractors for 80% of their monthly salary up to £2,500, mirroring the support available to employees. According to the Chancellor’s statement, anyone who has suffered a loss of income due to the crisis may be eligible. However, the government are still to iron out some key details, meaning that payments won’t be made until June.
An extension has been made to the IR35 private sector reforms, until 2021, in response to the UK-wide coronavirus pandemic. The move to delay the off-payroll reforms by 12 months has been a positive one, though there are fears that the move has come too late, with many businesses already having made changes in anticipation.
March 11th saw the Chancellor Sunak deliver his first budget. Though his key focus was on the government’s response to the challenges faced by COVID-19, he announced changes to Entrepreneurs Relief which is set to fall to £1 million, an increase in rates for using a home office, from £4 to £6, and a promise to address the unfairness of IR35 (this has since been delayed).
The government’s multi-billion pound support plan was announced to help businesses and their employees with cashflow amidst the COVID-19 outbreak. Businesses can apply for loans to help pay their employees, request deferrals on self-assessment payments and seek help from a dedicated HMRC line if they are unable to pay tax bills in time.
If you have any questions about how any of the recent developments could affect you or your company, please contact your accountant directly or call us on 01442 275 789.
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