The Official Budget 2016 thread

[TheCyclingProgrammer]

No simplification of T&S rules for now...

Travel and subsistence expenses rules – In September 2015 the government published a discussion document aimed at modernising the tax rules for travel and subsistence (T&S). The government has analysed responses and concluded that, although complex in parts, the current T&S rules are generally well understood and work effectively for the majority of employees and has decided not to make further changes to the T&S rules at this time.

[lucyclarityumbrella]

<-- No kids..

Great. Thanks for that.

Welcome

[mudskipper]

1.149 Public sector bodies have a responsibility to taxpayers to ensure that the people working for them are paying the right tax. 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. This strengthens the public sector’s role in ensuring that the workers it engages comply with the rules


The agency will have to operate PAYE?

[SimonMac]

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

Daft question, but what "rules"

[moggy]

I guess that's where being a specialist in your area and great at what you do cones in. If you're just a commodity keeping a seat warm you may struggle.

you mean not a proper contractor then...

[TheCyclingProgrammer]

Company distributions – As announced at the Spending Review and Autumn Statement 2015, the government will amend the Transactions in Securities rules and introduce a Targeted Anti-Avoidance Rule in order to prevent opportunities for income to be converted to capital in order to gain a tax advantage. The government will respond to the consultation on company distributions in March 2016.

TIS rule changes and "anti-phoenixing" rules to be clarified soon.

[jamesbrown]

HMRC notes here:

https://www.gov.uk/government/public...es-legislation

[PerfectStorm]

So personal allowance up, income tax down and corporation tax down... weren't contractors whinging last year?

[TheCyclingProgrammer]

Speaking of ER, one to keep an eye on...

Capital Gains Tax entrepreneurs’ relief: review of the definition of a trading company – The government will review the definition of a trading company for ER purposes to ensure that it operates effectively.

[eek]

So personal allowance up, income tax down and corporation tax down... weren't contractors whinging last year?

Devil is in the detail and we wont know until we see all the detail.