What can we expect in the 2019 Autumn Budget?

It is expected that the 2019 Autumn Budget will follow the same format as the previous two Budgets, as the Chancellor of the Exchequer delivers the latest tax updates.

A date is yet to be announced, but it is rumoured to be on or around October 21^st 2019, assuming Britain is able to strike a Brexit deal with the EU.

Should Britain leave the EU without a deal, an emergency budget is likely to follow once the government knows exactly what the country’s fiscal need will be.

A further announcement regarding the off-payroll reform (IR35) for the private sector is expected, but there is little detail available of what that may contain.

It will be interesting to see exactly what happens with IR35, in light of the fact that Mr Javid said he was committed to doing away with IR35, albeit nine years ago before he became a politician. Now he is the Chancellor, it could be said that he has the opportunity and the position to do just that.

In July the FCSA made a fresh appeal to the new Chancellor to take a fresh look at the draft off-payroll legislation citing that the new regulations would bring complexity, unfairness and extra administrative burdens that will be damaging to the UK economy, the flexible labour market, the recruitment sector and the workers themselves.

The UK is in a position where every decision it makes regarding the economy is crucial. It is vital that the UK remains an attractive place to do business. Therefore, pressing ahead with the off-payroll reforms could be a big mistake.

Sadly, with the economy contracting slightly and student debts rising by a further £12bn, the Chancellor is left with very little wriggle room with regards to the nation’s finances.

Add in the recent spending pledges and the economy will need all the extra income it can get, so any news that IR35 is going to be reviewed may well be a pipe dream… but we can live in hope for now.

We will be updating you with further blogs on IR35 and the Autumn Budget over the coming months, so watch this space. You can stay up-to-date by subscribing to our monthly eNewsletter in the form opposite.

If you are a contractor who is concerned about IR35 and your tax status in the eyes of HMRC, you can clarify your position with a comprehensive Contract Review and Legal Expenses Insurance.

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The Government cancelled its November Budget amid concerns from the freelancing sector that this could lead to rushed legislation regarding the ‘off-payroll rules’. The Freelancer & Contractor Services Association (FCSA) is particularly concerned that this could impact on proposals to regulate the umbrella sector, and stated that it was no surprise it had been cancelled as the date was so close to the proposed BREXIT deadline.

It is now more likely that there will be a Spring Budget as the Government has to have a Finance Bill in order to collect tax.
With the off-payroll legislation already drafted it is highly likely that it will be included in the next Budget amid fears it could be rushed through without proper scrutiny.

It is important for the Government to also legislate for umbrella firms to be regulated from April 2020, to deal with those firms purporting to be umbrellas when they are actually tax avoidance schemes.
There was an increase in such schemes as a direct consequence of the 2017 public sector reforms, so it is essential that the Government deals with this.

The risk is that contractors will be aggressively targeted by the schemes, putting them at significant personal financial risk.
The Government made a commitment to regulate umbrellas from April 2020 as part of the Good Work Plan.

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