Budget 2016 - Alastair Kendrick outlines what he expects to be announced next week
The budget is likely to introduce a significant number of changes in regard to employment taxes which will sit alongside what already are considerable changes which have been announced.
We already have the following changes at April:
- the stopping of dispensations
- the scrapping of the lower earnings limit of £8,500
- the ability to payroll benefits
- the exclusion from charge of minor benefits
- the stopping of the use of salary sacrifice for travel & subsistence expenditure
We are expecting confirmation of the scrapping of the claiming of travel & subsistence by umbrella company workers who are engaged in a contact where there is 'direction,supervision & control'. There are also expected to be announcements on IR35.
We are also expecting an announcement on the OTS review of status with their recommendation for a statutory test for self employment.
There will also be clarification over the future taxation of company cars which is promised to add certainty of the long term cost of having a vehicle.
The big question is will he stop salary sacrifice or not? The potential annual saving of £37billion may prove to tempting for the Chancellor.
I will be listening carefully to the announcements in preparation to deliver the update in our webinar.