Budget 2015 Articles

A review of today’s Summer Budget (8th July 2015) highlights the following key points that could affect Umbrella Company workers or contractors/freelancers who operate through their own limited company :

Personal tax

Employment intermediaries and tax relief for travel and subsistence – As announced at March Budget 2015, the government has published a consultation document alongside the Summer Budget on detailed proposals to restrict tax relief for travel and subsistence for workers engaged through an employment intermediary, such as an umbrella company or a personal service company. The changes will take effect from 6 April 2016. (Finance Bill 2016)

IR35 reform – The government will engage with stakeholders this year on how to improve the effectiveness of existing intermediaries legislation (‘IR35’) which is designed to protect against disguised employment. A discussion document will be published after Summer Budget 2015.

UK Budget 2015 Summary in full for Contractors

The Government has published the full budget 2015. A search for contractors, freelancers and umbrella companies highlights the following:

Umbrella companies and employment intermediaries

1.250 Autumn Statement 2014 announced that the government would review the growing use of overarching contracts of employment that allow some temporary workers and their employers to benefit from tax relief for home-to-work travel expenses, relief not generally available to other workers. This is unfair. As a result of the review, the government will change the rules to restrict travel and subsistence relief for workers engaged through an employment intermediary, such as an umbrella company or a personal service company, and under the supervision, direction and control of the end-user. This will take effect from April 2016 following a consultation on the detail of the changes. It will level the playing field between employment businesses that seek to lower their costs by using these arrangements and those that do not.

Today, 18th March 2015, is the final budget before the General Election. At Umbrella.co.uk we will be reporting all the changes that will affect contractors, freelancers and umbrella companies.

Because this is the last budget pre-election many hope that it will be an opportunity for good news as the Tories will be keen to gain support.

All Umbrella Companies are Equal (AUCAE) have launched a survey so that contractors can have their say on any concerns they may have about the Government’s proposed changes to tax relief on travel and subsistence that were announced in Budget 2015.

The Government has announced it may restrict tax relief on travel and expenses for some contractors where they cannot demonstrate they have control, supervision or direction of their own work. 

Budget 2015 Summary
marketing | 18 March 2015
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The Chancellor started with his opinion of how “Britain is Walking Tall”. Economy growing faster than any other major country and number of people working at an all-time high with claims at a long term 40 year  low.

Pre-Election buzz words are that the Government have a plan and it’s working and that it needs to be stuck to. From austerity to prosperity. Out of the red and into the black. Britain on right track, we must not turn back.

marketing | 11 March 2015
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Only one week to go until the Chancellor, the Rt Hon George Osborne MP, delivers his  2015 budget.

The budget will be delivered to Parliament at 12.30pm on Wednesday, 18th March. Live coverage is on BBC2.

The good news for the average tax payer is that because it is an election year (Thursday 7th May) then the Conservative Party should be keen to spread the feel good factor and cut taxes in order to maximise votes!