Will the Autumn statement change the tax on contractors on Wednesday?
Author: Russell SmithNovember 20, 2015
The word on the street is that George Osborne is going to after personal service companies this Wednesday in the Autumn statement.
Personal service companies are people who leave employment to contract for the same companies as limited companies rather than employees.
Rules are already in place (IR35) to catch ‘disguised employment’ and to impose an employee level of tax on the self employed but in July 2015, George Osborne announced that a consultation paper would be published in this area.
It is possible that new rules may come into force to be announced on Wednesday.
This will be massive news for contractors and could remove the tax incentive of contracting through a limited company.
We will have to look at the detail carefully to see where the boundary is from a ‘contractor’ and someone running a business.
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