Finance Act 2016

[billybiro]

So here's the bit we wanted to know about:

1.13. Employment Intermediaries and tax relief for travel and subsistence
As announced at Autumn Statement, legislation will be introduced in Finance Bill 2016 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 (IR35) applies, and for individuals working through other employment intermediaries, where the worker is under supervision, direction or control in the manner they carry out the work. The legislation will include provisions for transfer of debt in appropriate circumstances to help ensure compliance. The changes will take effect from 6 April 2016. A response to the consultation was published on 9 December 2015. (Draft clause 9 and TIIN)

This provides a nice summary of the annoucement, too:

Good news for contractors in the Finance Bill 2016 | Intouch

[jamesbrown]

There's also an interesting comment buried in the consultation on company distributions (i.e. TIS), here.

Seems unlikely, but it's worth noting. There was speculation along these lines back in 2010. Here's some commentary from the time, surprisingly topical given the dividend tax changes.

Picked up by the FT today in an article entitled "Revenue considers dusting down 1970s-style business tax".

[SunnyInHades]

So expenses wise come next April ..

1) client,umbrella = no
2) client,agency,umbrella = no
3) client,ltd = yes
4) client,agency,ltd = ??

is 4) yes or no ?

"the eligibility for relief will be determined based on whether or not the intermediaries legislation (IR35) applies"
"contractors who are not paid through an agency only have to consider IR35"

[jamesbrown]

Yes, in your scheme, assuming the relevant contract is not inside IR35. Not sure where you got the last quote, but the rules apply to direct and agency contracts alike and the policing arrangements haven't changed, i.e. business as usual....for now.

[colinrobinson]

SDC chargeable

This is what I've gathered.

Effectively another layer of complexity to the market and more jobs for HMRC and advisers.

1) No, unless Brolly talks to Client and agrees its outside SDC and IR35
2) No, unless Agency-Client-Brolly agrees its outside SDC and IR35
3) Yes, as long as contract is outside IR35 (No SDC test)
4) Yes, as long as contract is outside IR35 (No SDC test)

Unbelievable level of complexity now....

How about making SDC a chargeable service to the client, £500 a day or £550 with the right Of SDC. It would at least be very clear whether the Client Wants SDC or not.

[boxingbantz]

So these changes to dividend tax - are they definitely coming in April 2016? No mention of the changes from what I can see.

[TheFaQQer]

So these changes to dividend tax - are they definitely coming in April 2016? No mention of the changes from what I can see.

Yes. That was confirmed in the budget.