Response from George Osborne re IR35
In November 2015, prior to the release of George Osborne’s Autumn Statement, we wrote to the Chancellor raising our concerns in respect of proposed legislation changes to IR35, travel & subsistence tax relief for contractors and the one month rule that was incorrectly rumoured to being introduced for contractors working through their own limited company.
Today, 9th December 2015, we have received a reply and are thankful for the time taken in doing so.
Coincidently today is the day when the first draft of the new Finance Bill will be released. This Bill will contain the new legislation.
In the reply to, Nick Holmes, CEO of Umbrella.co.uk, it was confirmed, as we knew from the subsequent Autumn Statement, that the draft Finance Bill would include changes to tax relief on Travel and Subsistence expenses for contractors working through an umbrella company.
Of more interest was in respect of IR35 and that the Chancellor stated “We will be considering this issue carefully before taking any further decisions. Should any further changes be introduced they would be subject to detailed consultation before publishing any draft legislation”.
The good news we can take from this is that there will be no changes to IR35 in today’s Finance Bill and that the Government do not appear to be rushing through any changes, if indeed it has any plans to do so.
Umbrella.co.uk still have concerns over the processes of consultation as the points raised by the industry, contractors or freelancers and companies utilising their services seem to have little bearing on the outcome of the final outcomes.
We will continue to support contractors & freelancers and to adapt to any changes introduced.
Umbrella.co.uk can be contacted on 0800 121 6513 or email firstname.lastname@example.org
Umbrella-Company Limited & Umbrella Accountants LLP