finance bill Articles

Finance Bill Confirms Private Sector IR35 Details
marketing | 15 July 2019
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The Treasury has published the Finance Bill 2019-20 , which confirms a number of important details about the upcoming IR35 reforms in the private sector.

 

Ignoring some of the recent calls for the reforms to be delayed, the bill confirms that off-payroll rules will be extended to the private sector from 6 April 2020.

 

In line with the changes in the public sector, private sector clients will be responsible for assessing a contractor’s IR35 status. Previously, this responsibility lay with the contractor.

 

Finance Bill amendment could result in some contractors having to repay expenses

http://team@umbrella.co.ukFortunately though, no Umbrella.co.uk contractors will have to repay any claims since April 2016.

Confusion about the wording of the Finance Bill 2016 resulted in some contractors claiming for Travel and Subsistence (T&S) expenses when they shouldn’t have. An amendment to the bill has now been applied retrospectively to April, meaning that anyone who claimed for expenses incorrectly will now have to repay the money. 

Draft Finance Bill 2016 Issued

As disclosed in the Chancellor’s Autumn Statement, the Government have drafted legislation changes that will see workers employed through umbrella companies no longer being eligible for tax relief (Income Tax and Employee National Insurance) on reimbursement of their travel and subsistence expenses.

The change is expected to affect up to 430,000 umbrella company workers.

Relief will be restricted where services are supplied under the supervision, direction or control of another person.

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.

UCATT Umbrella

UCATT (Union of Construction, Allied Trades and Technicians) have come in for criticism for their blanket policy of targeting umbrella companies and not understanding that it is actually the change in legislation that means many construction workers can no longer be treated as self-employed or paid through the Construction Industry Scheme (CIS).

Government rushes through stripped down tax bill before election

In a bid to rush their latest Finance Bill through the House of Commons before the snap general election this June, the government stripped out some key parts of its tax agenda, including the Making Tax Digital scheme.

The revised Finance Bill, which was passed through the Commons on Wednesday, was 80% shorter than the original document, but one thing that wasn’t cut from the revised bill was the controversial IR35 reforms for public sector contractors. 

Finance bill confirms travel and subsistence restrictions
marketing | 24 March 2016
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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. 

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.

finance bill

There have been a number of scare mongering stories that the days of Umbrella Companies are numbered following the inclusion on 10th December 2014 of the following statement in the Finance Bill

editor | 11 December 2012
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The Draft Legislation for The Finance Bill 2013 is to issued today (11th December 2012).

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