The Treasury has announced that Chancellor of the Exchequer Philip Hammond will be delivering the Autumn Statement 2016 on 23rd November. The statement will provide the latest forecasts for public finances as well as the economy.
IT contractors as well as other contractors will be waiting eagerly for the Autumn Statement as they may finally get clarity on IR35 reforms for the public sector.
Former tax official Carolyn Walsh pointed out that if the tax officials have already made their decision regarding IR35 reform for the public sector, there is no point in waiting to present it. However, at the same time, she stated that there may be a delay in revealing the IR35 reform because of the minor alterations that the tax officials are making to the IR35 proposal.
Another reason for the delay could be to ensure that staff who will be using the new IR35 framework can get sufficient time to learn and prepare for it.
Walsh said that an experienced employer will be able to manage the IR35 reforms for the public sector. However, IT contractors as well as other contractors may find it difficult to understand these changes as many of their employees often work for a third party and are no longer on their payroll. Hence, it is important that they receive clarity on the matter and how the reforms govern them and their employees.
Officials have already published guidance on how members of the public, interest groups and representative associations can submit their representation for the Autumn Statement. Several contractor accountancy firms will respond to this guidance, particularly because this will be Hammond’s first Autumn Statement.
It is anticipated that the Autumn Statement 2016 will help make the tax system simpler for contractors, and that is good news for IT contractors.