Autumn Statement

[chopper]

The anticipation is literally killing m,

spoiler alert.

M was killed in Skyfall, but there is a new M in Spectre and I doubt he is bothered in the slightest about the potential tax plight of contractors, given that he'll be a permie.

[Andy Hallett]

75% Tax on agency margins

Thats my definition of a contractor!

[webberg]

3.20 Employment intermediaries and tax relief for travel and subsistence – As
confirmed at Summer Budget 2015, the government will legislate to restrict tax relief for travel
and subsistence expenses for workers engaged through an employment intermediary, such as an
umbrella company or a personal service company. Following consultation, relief will be restricted
for individuals working through personal service companies where the intermediaries legislation
applies. This change will take effect from 6 April 2016.

extract from Treasury Blue Book today

[lucyclarityumbrella]

We have received the following information from our contact at HMRC with regards to IR35:

"Intermediaries legislation - IR35

As you know the government announced at the Summer Budget that HMRC would engage with stakeholders over the summer about the best way to reform the intermediaries legislation (IR35). A discussion document was published on 17 July and HMRC received over 160 written responses in addition to 14 roundtables with stakeholders.

The government is considering responses to the discussion document. The government’s objective as set out in the discussion document is to find a solution that protects the Exchequer and improves fairness in the system without creating disproportionate burdens on business, or widening the scope of the rules."

[jpdw]

3.20 Employment intermediaries and tax relief for travel and subsistence – As
confirmed at Summer Budget 2015, the government will legislate to restrict tax relief for travel
and subsistence expenses for workers engaged through an employment intermediary, such as an
umbrella company or a personal service company. Following consultation, relief will be restricted
for individuals working through personal service companies where the intermediaries legislation
applies. This change will take effect from 6 April 2016.

extract from Treasury Blue Book today

So a legal definition of a PSC will be forthcoming.....?

[lucyclarityumbrella]

I think that might be wishful thinking! Hopefully the 9th will shed some light on it all.

[WordIsBond]

So a legal definition of a PSC will be forthcoming.....?

LOL. If they could figure out how to do that, without catching people they don't want to catch, it would have been done years ago, and IR35 would have been replaced with something workable.

[jpdw]

I think that might be wishful thinking! Hopefully the 9th will shed some light on it all.

Well if they don't define it, wouldn't it be rather hard to enforce?

[lucyclarityumbrella]

Well if they don't define it, wouldn't it be rather hard to enforce?

A bit like the definition of SDC, all a mystery it seems even to the people with the power!

[jamesbrown]

Well if they don't define it, wouldn't it be rather hard to enforce?

No, not at all. Does IR35 require a definition of a PSC? There will be no legal definition of a PSC forthcoming. It will be no more complicated than enforcing IR35, i.e. caught = no T&S relief (on a contract-by-contract basis). This will continue to apply when IR35 is reformed.