Kate Cottrell from Bauer & Cottrell has produced updated guidance for Public Sector workers worried about IR35.

The guidance reflects the withdrawal of the IR35 Business Entity Tests (BET’s) and the publication of the Government’s Procurement Policy Note 08/15: tax arrangements of appointees:

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, 9^th 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.

Once the dust has settled and the analysis over and done with, the Autumn Statement delivered by Chancellor George Osborne yesterday may well be looked back on as positive for business.

With the economy in good shape, and the Chancellor all too aware that he will be challenging a party leadership contest in the not too distant future, it looks as though he is trying to shirk the unpopular public image of ‘George the Cutter’.

Our interpretation of the restriction on Travel & Subsistence expenses is that it will only apply to contractors working through their own limited company that are caught by IR35 legislation.

However, other commentators in the industry interpret the statement made to be that restrictions will apply to umbrella company workers and PSC’s caught by IR35 and that potentially there may be a Supervision, Direction and Control type test to see if a worker is entitled i.e. that they are truly self-employed. 

The Chancellor. George Osborne, will deliver his Autumn Statement on 25^th 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.