Autumn Statement 2015

Autumn Statement 2015

Autumn Statement 2015

As you may already be aware yesterday the Chancellor confirmed his intention to restrict the ability of contractors to get tax relief on travel and subsistence expenses.

As of yet the Chancellor has not revealed the details of the changes meaning we cannot yet fully know what the impact will be and who it will affect, other than it will have an impact on those working through an employment intermediary such as an umbrella company. We are expecting to receive the full details within the next couple of weeks, for now in the written release of the Autumn Statement the Chancellor states:

“3.20 Employment intermediaries and tax relief for travel and subsistence – As confirmed at Summer Budget 2015, the Government will legislate to restrict tax relief for travel and subsistence expenses for workers engaged through an employment intermediary, such as an umbrella company or a personal service company. Following consultation, relief will be restricted for individuals working through personal service companies where the intermediaries’ legislation applies. This change will take effect from 6 April 2016.”

This could result in a reduction in take home pay for agency workers, umbrella workers and those working through PSCs (if caught by IR35). For those PSCs working outside IR35 and paying themselves dividends, there should be no change.

If you have any queries please do not hesitate to contact our Contractor Specialist Team who will be more than happy to answer any questions you may have.

 

 

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