IR35 and the Budget – What you need to know – ForeTwo Group
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IR35 and the Budget – What you need to know

If, like many people involved in the temporary staffing market – end-hirers, agencies, freelancers and contractors alike, you were hoping for a stay of execution regarding the upcoming changes to Off-payroll reforms in the Private Sector, then no doubt yesterday’s Budget will have left you feeling cold and disappointed. The fact there was no mention of it underlines the fact that the changes are already enshrined in the 2020 Finance Bill, so in some respects, there was really no reason for Rishi Sunak to mention it – it was always going to happen.

 

If you have yet to get engaged in the process of preparing for the changes, you really need to get moving on this – there is no time to waste!  We can help with how it can be done efficiently and in a stress-free way. We believe this will be key to winning the war for retaining and attracting top talent.

 

Assessing and determining a role, creating a Status Determination Statement and issuing it throughout the supply chain may sound daunting but it really isn’t when partnering with the right supplier. To learn more about how we can help debunk the mythical beast that is IR35, take the stress out if it and de-risk the whole supply chain or arrange a demo of our insurance-backed IR35 Status Determination Tool, drop us a line on 01925 937 025 or send an email to ir35@foretwogroup.co.uk

 

Regarding the rest of the Budget, ForeTwo’s Adam MacVitie had this to say on it “The budget has confirmed that there will continue to be assistance to get us out of the current crisis the economy is facing with the extension to furlough, loans and grants.  This assistance will continue to help individuals, sole traders and companies through the financial problems that Coronavirus has caused.  However, this assistance must be funded somehow and the budget has confirmed that the future will bring steeper tax increases in the coming years to help cover the costs associated with this.”

 

Some of the key takeaways you need to know from the Budget:

 

 

  • Minimum wage to increase to £8.91 an hour from April 2021 and will now apply to over 23 year olds rather than over 25’s
  • Furlough extended until the end of September 2021
  • Support for the self-employed to be extended until September 2021
  • Approximately 600,000 more self-employed workers will be eligible for grants
  • New visa scheme to assist rapidly growing tech firms and start-ups source talent from overseas
  • No change to Income Tax, National Insurance or VAT
  • Personal income tax allowance held at £12,570 from 2022 until 2026
  • The threshold for Higher rate income tax will be held at £50,270 from 2022 until 2026
  • Corporation tax on company profits to rise from 19% to 25% in April 2023
  • Businesses will be able to deduct investment costs from tax bills, reducing costs by 130%
  • No changes to lifetime pension allowance, capital gains tax allowances and inheritance tax
  • Tax break incentives for firms to access £20 billion worth of business investment
  • Incentive grants for apprenticeships to rise to £3,000 and £126m for traineeships