A positive spin on the autumn statement

With the growth forecast increased and borrowing revised down, everything looks rosy for the government. A drive to enable the public to share in the remaining privatisation of RBS next year also indicates that a general election must be right around the corner.

However, what about the details for our industry? Well…

You’ll have seen reports of reactions to the government clamping down on onshore intermediaries to prevent them from using contracts to disguise employment as self-employment. This will impact contractors who currently receive their pay as gross – a scheme that popped up after offshore was investigated.

The Office of Tax Simplification has also been asked to release some more quick wins, specifically with travel and subsistence. More clarity and guidance will be provided to ensure we at last have a level playing field with limited companies and gross schemes.

From 2015 under 21s will get a tax exemption from employer’s national insurance, which will hopefully encourage employment for younger individuals. A welcome tax break I’m sure.

In my opinion, the autumn statement is a big win for the economy, umbrellas, and, from 2015, under 21s.

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