chancellor Articles

How the Spring Statement affects contractors

The Chancellor Philip Hammond delivered his annual Spring Statement on Wednesday, providing an update on the state of the economy and announcing several minor policy updates.

Although the Spring Statement doesn’t have the kind of wholesale policy announcements that are characteristic of the Autumn Budget, the Chancellor did have some important news for contractors and professional employment service providers.

Here’s a quick breakdown of the most important issues for the sector.

 Autumn Statement - 5 key takeaways for contractors
marketing | 23 November 2017
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In amongst the Britain’s Got Talent audition that the chancellor took part in yesterday were some announcements regarding the economy and some good news for contractors. We won’t repeat his numerous Christmas Cracker jokes but here’s the 5 key takeaways for contractors;

Umbrella.co.uk Budget Briefing
marketing | 21 March 2016
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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. 

George Osborne Eyes Contractors

In a speech designed to show how well the economy was recovering and how it was prosperity all around it may have been hard to notice that George Osborne had one eye on the huge number of contractors and freelancers that support the economy and its recovery.

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.

Contractors Pushed Down Insolvency Payout Pecking Order
marketing | 8 November 2018
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Last week , we covered some of the biggest Budget announcements and how they would affect contractors. This included a big change to private sector IR35 rules 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.

Self-employed welcome Chancellor’s ‘screeching’ U-turn

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”. 

Chancellor warns of new threats to UK economy

George Osborne has warned that the health of the UK economy is at risk from shaky global conditions, saying 2016 has opened with a “dangerous cocktail of new threats”.
Speaking in Wales, the Chancellor cautioned that, far from being ‘mission accomplished,’ 2016 will be ‘mission critical’ for Britain.

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!

Autumn Statement

Today, 3rd December 2014, the Chancellor George Osborne delivered his Autumn Statement (#AS2014).

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