On the 25th November 2015, George Osborne will present the first ‘all Conservative’ Autumn Statement to the House of Commons. The Autumn Statement is similar to the yearly Budget – announced in July, but contains less important economic policies. Last year’s Autumn Statement took roughly 55 minutes to be presented by Mr. Osborne and there is no reason to suspect this years will vary much in length.
This summer’s Budget heavily focused on contractors. Contractors who operate a low salary and high dividend set-up were affected due to dividend tax law changes. Whilst contractors who are the sole employee of their own Limited Company were informed that they could no longer claim the NICs Employment Allowance.
The rumour mill is awash with speculation over the Autumn Statement and the impact it may have on contractors. The government has already confirmed that some legislation will be revised. It was announced this summer that the Treasury intend to change the current IR35 tax legislation and this autumn’s statement is likely to provide an update. In addition, the government plans to introduce Supervision, ‘Direction or Control’ (SDC) to restrict contractors from tax relief on travel and subsistence expenses.
Whilst not being directly linked to contractors, government departments are facing significant cuts. The government has already stated that such cuts are imminent, but have not disclosed to what extent – some sources are sighting that they could be as high as £15 billion. Pensions are also expected to be reformed.
We will review the Autumn Statement once it has been released, providing you with detailed advice on changes that will affect your working circumstances.