autumn statement Articles

marketing | 25 November 2015
/ / / /

We have scoured the document in-house at Umbrella.co.uk and can only find the below statement that relates to contractors and travel and subsistence.

“Employment intermediaries and tax relief for travel and subsistence – As confirmed at Summer Budget 2015, the government will legislate to restrict tax relief for travel and subsistence expenses for workers engaged through an employment intermediary, such as an umbrella company or a personal service company. Following consultation, relief will be restricted for individuals working through personal service companies where the intermediaries legislation applies. This change will take effect from 6 April 2016.”

https://www.gov.uk/government/publications/spending-review-and-autumn-statement-2015-documents/spending-review-and-autumn-statement-2015

marketing | 25 November 2015
/ / / /

The Chancellor, George Osborne will deliver his 2015 Autumn Statement today Wednesday, November 25th at 12.30pm. 

Along with the detail of the spending review, the Autumn Statement is rumoured to include various changes that may affect contractors and freelancers working in the UK. He is, in particular, rumoured to be targeting tax relief on travel and subsistence expenses as well as those contractors who work through their own limited company. 

We will be providing regular updates throughout the speech and on reviewing the full detail of the Autumn Statement once published, which is expected in early December.

We will also be monitoring the responses in the coming days and what these changes will mean.

Autumn Statement wish list for limited companies
marketing | 23 November 2015
/ / / / / /

Christmas is just around the corner and while limited company owners are all a bit old to be sending letters to Santa Claus, we thought we’d draw up a different wish list – one for the chancellor to read before his Autumn Statement.

1)     Reappraise the dividend tax changes  

From April 2016, changes to the rules governing dividend tax payments will make lots of limited company owners worse off.

The changes affecting limited companies will see the notional 10% tax credit on dividends abolished and replaced with a £5,000 tax free dividend allowance. Over this threshold, dividends could be taxed at a rate of up to 38.1% (for additional rate payers). 

HMRC Tax Office

HMRC, the UK’s tax authority, has announced that 137 local tax offices are to be closed and replaced with 13 regional tax centres. The announcement which comes after reports emerged that taxman failures were costing the public purse. It has stoked fears of job losses and short term disruption to the tax system.  

One of our Directors at Umbrella.co.uk, Miles Grady BA (Econ) Hons ACA, has performed a detailed review of the HMRC review into Travel and Subsistence expenses and below lists a number of key points into why HMRC should not stop umbrella company contractors

marketing | 25 November 2015
/ / /

The Autumn Statement speech has now finished and there was no mention of contractors, freelancers, umbrella companies or personal service companies. 

Full text available at: https://www.gov.uk/government/speeches/chancellor-george-osbornes-spending-review-and-autumn-statement-2015-speech

The full Autumn Statement document is currently being analysed by our in-house tax experts to see if anything else would affect our industry.

Government blamed for contractor confidence crisis

An index measuring contractor confidence has dropped significantly in the third quarter of 2015, with government attitudes towards contracting the apparent root cause.

The Freelancer Confidence Index which is conducted by The Association of Independent Professionals and the Self Employed (IPSE) has recorded a significant decline in the latter parts of 2015.

The index score measuring contractor’s business prospects has dropped negative for the first time ever. 

Reactions to the one month contractor cap

A shock employment law regulation which could be announced at the Autumn Statement on the 25th of November has been heavily criticised by large portions of the contracting community. Currently it is unclear when it will come in, if at all.

The rumoured policy proposal, which many insist is still only a rumour, would mean that contractors using personal service companies like Umbrella.co.uk would be obliged to move onto a client’s PAYE system if their contract ran longer than one month. 

The Chancellor. George Osborne, will deliver his Autumn Statement on 25th November 2015 and rumours have just been leaked that he is considering sweeping changes that will adversely affect UK contractors.

The Autumn Statement is in effect a mini budget.

Contractor One Month Rule

Over the weekend there were various reported leaks that The Chancellor is considering a new rule that would mean contractors who take a contract longer than one month would have to be paid PAYE by their end client after just one month. It is unclear if it would be from day 1 if it was known at the start that the contract would be for more than one month.

umbrella, expenses

The Chancellor included Umbrella Companies in his Autumn Statement after what seemed to be as a result of a campaign from UCATT and other Trade Unions criticising Umbrella Companies.

Pages