Contractors should be reassured by Chancellor George Osborne’s assurance of a “fiscally neutral overall” 2013 Budget, and his observation that the government spends too much, rather than taxpayers paying too little. This commitment was evidenced by an increase in personal allowances and further reductions of corporation tax.
Key measures likely to impact on contractors in this year’s Budget:
- Introduction of the General Anti Abuse Rule (GAAR)
- Further anti-avoidance measures targeting offshore service providers
- Corporation Tax to fall to 20% in April 2015
- Tax avoidance scheme promoters to be ‘named and shamed’
- Infrastructure spending boost of £3bn for 2015/16
- Tax breaks for shale gas investment
- Decommissioning tax reliefs for the North Sea
- Fuel duty rises to be capped
- Tax relief on childcare costs
- Boost for housing to stimulate construction sector.
Details of the anti-avoidance measures are to be published in the ‘Red Book’ and ContractorCalculator will be publishing more detailed analysis of the Budget’s implications for contractors.