Yesterday the new Chancellor of the Exchequer, Philip Hammond, gave his Autumn Statement. There were be a number of changes announced that will affect our industry. ICS Head of Compliance, Martin Hall, discusses these changes;
“As expected, the details were quite general and we will have to wait until 5 December when the draft legislation is set to be released to find out more. We expect to see a version of the proposed online tool in the near future which is intended to assist the engager with making that decision.
“Another important development from the Autumn Statement for contractors working in the public sector is that the 5% tax-free allowance will be withdrawn. The government will also be introducing a new 16.5% VAT flat rate scheme from 1 April 2017 for businesses with limited costs, such as many labour-only businesses.”
We’ll keep you updated here on our blog with regards to the details released in the draft legislation for the Finance Bill 2017.
If you are a contractor working in the public sector and have any questions or concerns regarding the implications of the IR35 reforms, then feel free to contact ICS for more information regarding your accountancy options as a public sector contractor.