By Jonathan London on 27th November 2015

Just scaremongering? The Autumn Statement in Review

In the eyes of the freelance workforce, and small businesses in general, this week’s Autumn Statement has seemingly passed with a relatively little impact. As ever, the devil is in the detail, so we’ve put together our usual summary which you can download by clicking the link below.


What was included within the Autumn Statement?

If you’re a client, there was very little to concern you to come out of this year’s Autumn Statement in terms of tax changes – the big hitting headlines around Dividend Tax changes from this year’s Budget were not replicated, although the impact of these will be felt in April 16.

Despite recent press coverage , no cap on the length of contracts freelancers could take (before being forced to go on a clients’ payroll) was brought in. However changes could happen further down the line. The Chancellor made reference in his Autumn Statement to the Office for Tax Simplifications’ report into Employment Status (published in March 2015), confirming he would be taking forward some of its recommendations – the report included, amongst other things, a statutory test for employment determined by pay or length of employment.

Main impact on the Contractor workforce

Changes to the tax relief on travel and expenses will be enforced as outlined in the Summer Budget, and will come into effect from April 2016. This significantly impacts contractors choosing to work through an umbrella company and those Personal Service Company (PSC) contractors who are found to be inside IR35. Draft legislation is due to be published within the next two weeks , when we’ll cover it in more detail.

Thankfully aside from this, there was no mention of changes to be applied to IR35, although this is continues to be a possibility, with the Chancellor seemingly cracking down on anything which could be perceived as ‘tax avoidance’ to the public.

Click this link to download our Autumn Statement summary.

Jonathan London Written by Jonathan London

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