The results of a new study from Rest Less show that flexible work is increasingly popular with the over-50s.
Revealed on Thursday, the Chancellor’s new plan to ‘restore stability’ and ‘build long-term prosperity’ will involve billions of pounds of tax rises and spending cuts.
It comes at a time when many households are already struggling with higher prices and falling real incomes. So what does the Autumn Budget mean for you and your family?
Contractors praying for a delay to IR35 changes in the private sector will be disappointed by the Chancellor’s budget statement yesterday, but there were several positives that we can take away as well.
Chancellor Philip Hammond has been forced to make a ‘screeching’ U-turn on National Insurance contributions (NICs) for the self-employed.
In his budget statement last week, the Chancellor said that he wanted to increase Class 4 NICs, which are only paid by self-employed workers, by two pence in the pound in 2019.
Following heavy criticism from Tory backbenchers, the media and the self-employed community, the Chancellor has dropped this policy.
The SNP leader in Westminster Angus Robertson called it a “screeching” U-turn while Labour said the move was “humiliating”.
The Chancellors fourth Budget in 12 months arrived on Wednesday and it confirmed a number of policy changes that we already knew were going to arrive. Restrictions on Travel and Subsistence tax relief for IR35 contractors and changes to the dividend tax will take effect as planned in April.
The most significant new announcement will be of concern to contractors working through a personal service company (PSC) in the public sector.
An HMRC policy document reveals that from April 2017, public sector organisations will be responsible for enforcing IR35. This marks a significant change from the current system, whereby the PSC or agency judges whether a contractor is caught out by IR35.
Effectively, this means that many more public sector contractors will fall under the remit of IR35 legislation and will receive less take home pay as a result. This change is scheduled to take effect in April 2017 following a consultation.
The headline measures in Jeremy Hunt’s ‘back to work’ budget will benefit expectant parents and some higher earners, but a lack of action on tax brackets will leave many workers worse off.
In the 2023 Budget, the main policy announcements for employees revolve around childcare and pension reform.
The Chancellor Rishi Sunak is thought to be considering a sharp increase in the rate of corporation tax, as the Treasury attempts to curb borrowing in the wake of the coronavirus pandemic.
Reports suggest that the tax, which is paid on the profits of limited companies, could gradually increase from 19% to as much as 25% by the end of the current parliamentary term.
, we covered some of the biggest Budget announcements and how they would affect contractors. This included a big change to and other smaller changes to tax and spending.
Buried a little deeper in the Chancellor’s Budget statement, we uncovered one more change that pushes HMRC further up the payment pecking order when a business goes insolvent.
The government has published its Finance Bill, confirming a number of important amendments from the Budget and Autumn Statement.
It contains a number of important details about travel and subsistence (T&S) tax relief for contractors engaged through an employment intermediary, like an umbrella company.
Travel and subsistence
Clause 14 of the bill refers to ‘travel expenses of workers providing services through intermediaries’, detailing important changes to T&S tax relief for contractors engaged through umbrella companies.
The document includes a number of amendments, but none that were unexpected.
In the past, contractors working through umbrella companies have been able to offset ‘reasonable’ expenses like travel and accommodation against their tax bill to increase their take home pay.
The new Finance bill confirms a number of restrictions to this, particularly regarding how the new rules will be applied.
The Chancellor George Osborne has announced significant changes that might affect people working in off-payroll public sector jobs.
The announcement will change the way that IR35 legislation is applied - meaning that public sector organisations and authorities including Whitehall departments, schools, the NHS, police and public sector broadcasters like the BBC and Channel 4 - will be responsible for interpreting and enforcing the rules from April 2017.
There will be no change for off-payroll workers in the private sector, although this could change in the future.