Still says "Employment Allowance: withdraw from single person companies", so doesn't sound like they've tightened that up
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Other relevant material from pp.98-99:
Other personal tax changes
2.40 Off payroll working in the public sector – From April 2017 the government will make
public sector bodies and agencies responsible for operating the tax rules that apply to off-payroll
working through limited companies in the public sector. The rules will remain unchanged for
those working in the private sector. The government will consult on a clearer and simpler set of
tests and online tools. (Finance Bill 2017) (40)
2.41 Dividends tax – As announced at Summer Budget 2015, the government will abolish
the Dividend Tax Credit from April 2016 and introduce a new Dividends Allowance of £5,000 a
year. The new rates of tax on dividend income above the allowance will be 7.5% for basic rate
taxpayers, 32.5% for higher rate taxpayers and 38.1% for additional rate taxpayers. (Finance Bill
2016)
2.42 Loans to participators – The government will increase the loans to participators tax rate
from 25% to 32.5%, keeping it aligned with the higher rate of tax charged on dividend income.
The new rate will apply to loans made or benefits conferred by close companies on or after
6 April 2016. (Finance Bill 2016) (41)Comment
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Can anyone summarise what has happened to contractors in the budget? I won't be able to dissect until tonight.Comment
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No reference to PSC'sOriginally posted by jamesbrown View PostOriginally posted by Stevie Wonder BoyComment
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What I've said from the outset though is that if we pay PAYE we simply increase our rates. I've told my agents that already.Comment
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From April 2017, where the public sector engages an
off-payroll worker through their own limited company, that body (or the recruiting
agency if the public sector body engages through one) will become responsible
for determining whether the rules should apply, and for paying the right tax.
Agency will just declare contractor outside IR35, and takes out tax insurance. Meanwhile us contractors can work in public sector immune from IR35
Cats are evil.Comment
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And once again one para for T&S clarification:
2.39
Employment intermediaries and relief for travel and subsistence
– As announced
at March Budget 2015, the government will introduce legislation in Finance Bill 2016 to restrict
tax relief for home to work travel and subsistence expenses for workers engaged through an
employment intermediary. This will bring the rules into line with those that apply to employees.
(Finance Bill 2016)
Looking out for the HMRC notes now
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