Philip Hammond, the Chancellor of the Exchequer, will deliver the Autumn Statement 2016 on Wednesday November 23rd.Announcing the date the Treasury said that the Autumn Statement would contain the latest forecasts for both the economy and public finances.
However, for contractors it is predicted that the major thing the Autumn Statement will contain is an all clear to reform IR35 in the public sector.Reasoning is that if decisions have been made, particularly relating to IR35 in the public sector, then why wait, perhaps explaining an earlier Autumn Statement.The Governement though could decide to wait if it reaches the decision it still needs to refine the IR35 proposal or to allow those who will have to consider and operate the framework from April more learning and preparation time.For companies who have left the payroll function of their business to third party providers it is described as “a disaster waiting to happen”.
Individuals or outfits wanting to comment on IR35 or other government policies, or to suggest a new policy for inclusion in AS 2016, were addressed on Friday by the Treasury. In fact, officials have published guidance on how to submit an ‘Autumn Statement representation’ as an interest group, representative body or member of the public.
Brookson, a contractor accountancy firm, is among those likely to respond, as it has already said that AS 2016 takes on extra importance in light of it being Mr Hammond’s first AS.
Meanwhile, the founder of another contractor accountancy firm reportedly said at the weekend that the government’s aim should be to make the tax system simpler.
Simon Dolan, who set up SJD Accountancy in 1992, told the Mail on Sunday: “I would introduce a flat rate of income tax at 18 per cent or 20 per cent above £10,000, and get rid of VAT, Capital Gains Tax, Inheritance Tax and the rest of the millions of different taxes there are.” An interesting notion for sure, though while it does not seem we will see such radical plans outlined in November it will defintaely be one for contractors to pay close attention to.