IR35 to be abolished, confirms Small Business Minister Mark Prisk
IR35, the tax legislation that has caused so much uncertainty for contractors over the past decade, is to be abolished. In a Daily Telegraph interview, Small Business Minister Mark Prisk said: “We want to make sure that we could undertake a comprehensive review of small business taxation in a way that makes the need for the current IR35 legislation redundant.” The small business taxation review, which will include a review of IR35, is expected to be launched this summer. More…
Contractor-friendly Budget, but with a tax-sting in its tail
In his first Budget on 22nd June, Chancellor George Osborne announced a raft of business-friendly measures that are likely to improve contractor fortunes. These include reductions in corporation tax and increases in the personal allowance, plus a rise in the threshold of National Insurance Contributions that could benefit umbrella contractors, will leave many contractors better off. But high earners will not benefit from personal allowance rises and also face increases in capital gains tax from 18% to 28%. More…
Contractor pension tax relief could be slashed
Contractor pensions could be under threat as small-print in the budget document reveals that flat rate tax-free contribution allowances as low as £30,000 - £45,000 per year are being considered; the current allowance is £255,000 per year. A consultation is planned before any reforms are introduced, and the government says it will be taking the views of “employers, pension schemes, experts and other interested parties to determine the ... regime.” More…
New EU rules to impact on husband-and-wife contractor businesses
Statutory maternity benefit could be extended to the spouses of the UK’s self-employed workforce. This is according to the Association of Recruitment Companies (ARC), which points to new European Union rules due to be implemented within the next two years. ARC explains that current legislation covers employees of the self-employed but not spouses, even if they contribute to their partners’ business. Whether this could benefit self-employed contractors won’t be known until the UK legislation is drafted. More…
European growth slows and employment rises
Contractors looking to other European states for contracts may be disappointed, as the Markit Flash Eurozone Composite Output Index fell for the second month running. Although the index is trending upwards and manufacturing is expanding, providing opportunities for contractors in that sector, orders are down. However, employment throughout Europe has increased slightly, reaching a two-year high. More…
Public sector ‘jobs cull’ could provide contracting opportunities
According to the Chartered Institute of Personnel and Development (CIPD), the latest labour market figures released by the Office of National Statistics show that the UK jobs landscape is healthier than it has been, but is still flat. However, opportunities may arise for contractors as CIPD Chief Economic Advisor Dr John Philpott predicts 50,000 public sector job losses by next spring. More…