From now on, we’ll be rounding up the latest and most relevant contractor news for the contracting community once or twice a week and summarising it here on the Kingsbridge blog, making it your one-stop shop for all the latest information that’s relevant to you. Without further ado, here’s the first round up:
IR35 will not change until at least April 2017, confirms HMRC to IR35 Forum (Contractor Calculator):
“HMRC confirmed at the most recent IR35 Forum meeting on 15 December 2015 that no kneejerk measures will be implemented between now and the next Budget.
HMRC was reluctant to provide any timescale with regards to its next decision over the legislation, but it has confirmed that there will be no changes to IR35 included in the Finance Act 2016, meaning no new measures will take place during the 2016/17 tax year.”
Contractors not caught by IR35 can still claim tax reliefs (TaxAssist):
“Limited company contractors not caught by IR35 – a tax legislation designed to combat tax avoidance by workers supplying their services to clients via an intermediary – can still claim travel and subsistence tax relief.”
Busier freelancers are happier (Brookson):
“Many people choose to become a freelancer or start their own business to have more control over their schedule and enjoy a better work-life balance. A new study has now suggested that freelancers get so much gratification from their job that they are happier the busier they are.
Researchers from the University of Leicester and the University of London looked at the work schedule of 45 freelance workers over a six-month period. The study, published in the SAGE journal Human Relations, found that their wellbeing fluctuated in-line with their schedule.”
Self-employed contractor numbers reach record high (ONS):
“The number of self-employed contractors in the UK has reached an all-time high. This is according to the latest figures published by the Office for National Statistics (ONS) which show that the UK’s self-employed headcount rose above 4.6m in the three months leading to October, reflecting a 71k increase year-on-year and a 94k improvement on the previous quarter.” (Contractor Calculator).”
Contractors to submit quarterly tax returns from April 2018 (Gov.uk):
“The Government has revealed further details concerning plans to request quarterly tax returns from contractors over the coming years. In a document titled: ‘Making tax digital’, HMRC highlights that quarterly tax returns are set to be implemented from April 2018, as part of its new digital tax initiative.” (Contractor Calculator).
Draft 2016 travel and subsistence legislation – Briefing 3: Will there be a surge of PSC contracting and, if so, what risks might that involve? (Osborne Clark):
“On 11 December 2015 we issued a briefing looking at the key points and likely problems with the draft travel and subsistence legislation released on 9 December 2015, and on 14 December 2015 we looked at how umbrella models would be affected. Those were the first two briefings in a series of briefings about the draft legislation.
In this third of four briefings we comment on the impact of the proposals on users and suppliers of personal service company contractors (“PSCs”).”