A Very Mixed Autumn Statement

Yesterdays Autumn statement brought both bad news and not so bad news for contractors (we couldn’t quite bring ourselves to call it good news).

On the pensions front things are not looking great, the annual pension contribution allowance has seen a 20% cut from £50,000 to £40,000, the message here seems to be a clear “we want you to put less aside”. The lifetime allowance also sees a large cut from the £1.5 million which is presently in operation to the £1.25 million which will come into effect. These pension changes will take place in the 2014/15 tax year so at least you’ll have time to prepare and adjust your pension contributions accordingly.

Limited company contractors were however offered some positive news in that the introduction of the controlling person legislation will be put back beyond it’s initial 2013 implementation. I’m sure many of you will agree that it’s nice to have the goal posts stay in the same place, at least for a little while longer! However chancellor George Osbourne did also add that existing IR35 legislation would be strengthened to mitigate this, but at the end of the day the IR35 position is clear to most contractors and it was the addition of yet more legistlation in this area that was causing most concern.

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