As a result of announcements made during the last Budget, contractors will have to potentially negotiate four pieces of new tax legislation. Here we set out the main aims of each tax proposal, stripped of as much jargon as possible.
Contractor News Updates
We typically publish site updates when important events take place (such as upcoming changes to legislation, Budget reports). You can also keep up-to-date with the latest contractor news updates by following us on:
Limited company contractors will already be aware that dividends are set to be taxed more heavily from April 2016, however details of the proposed tax hike were ambiguous when first announced during the summer Budget. It now appears that the tax hit may be worse than many first thought.
New Government rules will require recruitment agencies to provide more information than ever to HMRC about the contractors on their books, including how much they’re paid. We asked an expert what this means in practice, and if there is a link between the new rules and IR35.
HMRC has offered users of ‘contractor loan schemes’ a chance to settle their outstanding tax liabilities on ‘favourable’ terms. The average contractor is thought to have avoided £11,000 for each year they took part.
In our latest news summary, RBS has imposed a 10% rate cut on the majority of its contract workforce, and recruitment agencies may be inadvertently falling foul of the Managed Service Company legislation, whilst attempting to comply with the new false self-employment rules.