As the last announcement of government spending before the UK leaves the EU in March, all eyes will be on Chancellor Philip Hammond as he delivers the Autumn Budget on 29th October.
With certain expectations by the British public for the Budget to adequately outline how the government will, in Hammond’s own words, ‘build a stronger, more prosperous economy’ following Brexit, we are looking at what we might expect to be included within the Budget, specifically those decisions that will impact the contracting community.
Of course, one aspect that the contracting and recruitment industries are waiting with baited breath for, is the possibility of IR35 reforms being extended into the private sector. Following the completion of the IR35 consultation in August, the government has been assessing responses as to how viable reforms in the private sector are, as well as exploring the impact that these same reforms have had on the public sector since their introduction in April 2017.
It is looking ever more likely that these reforms will potentially go ahead, and if so, we could see them come into force in April 2019. As a result of this, businesses throughout the UK must ensure that they are up to speed with IR35 legislation, what it will mean for their business and how their processes will need to change in order to guarantee compliance. Take a look at our blog on IR35 reforms in the private sector for more information on what it could mean for businesses.
Very little has been mentioned with regards to changes to income tax thresholds or National Living Wage increases in the press, but typically this is quite a significant feature of the Autumn Budget, and one that is highly likely to impact many contractors and agencies. Last year saw the National Living Wage increase from £7.50 to £7.83 and the income tax threshold rise from £11,500 to £11,850.
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