With the ongoing uncertainty around Brexit yesterday’s Spring Statement seemed more of a hindrance than a help for the Government. Nevertheless, Mr Hammond got up and delivered his speech and we were ready to listen carefully, but was it really worth giving up our lunchtime for?
In short, not really:
Considering the IR35 consultation announcement was made last week, it was not surprising to see it missing from the Spring Statement. But given its importance to UK Limited Company contractors, it would have been a good opportunity for Mr Hammond to remind industry of the changes that are on the horizon and to start their preparations now. If you missed last weeks IR35 consultation you can take a look at our review here.
Whilst this private sector reform may seem like a long way off, the consultation provides contractors with a fair warning to prepare now so that when the time comes they will be likely to be assessed accurately and fairly. Naturally, we are actively encouraging our clients to ask their end hirers what preparations they have already made to allow for a smooth transition when the legislation comes into effect in April 2020.
Tackling tax avoidance
A joint policy paper on HMRC’s approach to “Tackling tax avoidance, evasion and other forms of non-compliance” was also issued. In particular, the document outlines HMRC’s strategy and approach to compliance, and its ‘wins’ in addressing non-compliance. Within the paper the 150 individual measures outlined since 2010 are addressed, each designed to tackle avoidance, evasion and non-compliance.
Making Tax Digital (MTD)
MTD was also mentioned in today’s statement, and served as a reminder that it will come into play on 1 April 2019. Whilst HMRC are still ironing out some of the fundamental issues, it’s still worth understanding the importance of MTD and why you need to be aware. Our blog: All you need to know about Making Tax Digital will ensure you’re prepared for next month’s changes.
Spring Statement roundup
Yesterday’s statement really didn’t offer much by way of additional information for contractors. Our interpretation is that it served as a polite reminder of what’s to come and that everyone in the supply chain should be thinking about the 2020 reforms. No new tax changes were announced, so the status quo remains for contractors.
As always, if our clients have any concerns about how the Spring Statement or other contractor related government announcements might affect them they can ask their dedicated Intouch Personal Accountant for assistance.
If you’re not already an Intouch client and this sounds like the kind of expert personal advice you need from your accountant please get in touch today.
This blog has been prepared by Intouch Accounting. While we have made every attempt to ensure that the information contained in this blog has been obtained from reliable sources, Intouch is not responsible for any errors or omissions, or for the results obtained from the use of this information. This blog should not be used as a substitute for consultation with professional accounting advisers. If you have any specific queries, please contact Intouch Accounting.