To say that the present situation of British-based independent professionals is one of great fluidity and uncertainty, would be quite the understatement.
While, at the time of typing, the United Kingdom and the European Union have arrived at a new Brexit deal ahead of a possibly decisive showdown in the British Parliament over the weekend, the looming days and weeks could also be highly telling ones for the future of contracting in the UK for years and even decades to come.
One recent point of focus among many in the UK contracting sector has been the announcement that on 6th November, Chancellor Sajid Javid will hold his first Budget since being appointed to his position by Prime Minister Boris Johnson in July.
Brexit’s shadow may spell little hope for significant change
With the UK presently legally set to depart the EU on 31st October regardless of whether Mr Johnson’s deal is approved by MPs, Mr Javid has said that his upcoming Budget will be “the first… after leaving the EU” – notwithstanding some Parliamentarians’ efforts, under the Benn Act, to prevent any potential no-deal Brexit.
For independent workers and those who serve them, though, the cloud of uncertainty that persists around Brexit means the Budget may not be a significant one for any hoped-for changes.
One tax adviser quoted by the ContractorUK website, for example, suggested that any confirmation in the Budget of the Chancellor revoking the 2019 Loan Charge was unlikely, not least given that the Loan Charge Review will still be live as of 6th November, and Mr Javid won’t wish to upstage reviewer Sir Amyas Morse.
Another point of focus has been IR35 reform. The contractor sector’s enthusiasm for Mr Javid’s appointment in the summer was founded partly on his previously stated stance on what he once described for Conservative Home as “the silly IR35 tax on providers of personal services.”
The ContractorUK story quoted a contractor accountant as saying: “Business groups are starting – only just – to wake up to the work required just to continue to use contractors compliantly [due to private-sector IR35 reform in April 2020].
“But to be frank, I fear that HMRC have managed to convince Mr Javid that a policy he has previously been rightfully suspicious of – IR35 – doesn’t need any more of his time.”
Whatever Brexit brings, we can be your reliable partners
With trusted services including human resources outsourcing, tax advice and payroll solutions, Link Global Management has long taken great pride in serving as an informed and reliable ally of independent professionals and those that work with them.
This expertise and track record very much extends to the UK. So, don’t hesitate to enquire to our team today about how we can assist you in navigating all of the challenges that the ups and downs of the Brexit transition bring.