2016 for contractors a review

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A review of 2016 so far for contractors

Published on Monday, July 4, 2016

Written by Dinah Makani

We like to keep you updated and informed about the latest industry news affecting you as a contractor. Whether you work through an umbrella company or have your own limited company, our updates provide an overview of important changes to legislation affecting taxes, expenses and your livelihood as a contractor.


In this blog, we will summarise the first two quarters of 2016 and all the news that has been a hot topic in our industry in 2016 so far.

Umbrella companies – restrictions to travel and subsistence expense claims:

This has been a controversial matter since the Autumn Statement in November 2015 that came to fruition when the change in legislation came into effect on 6th April 2016.

The Government decided that many contractors who operated via umbrella companies were in fact employees of the umbrella company and therefore inside IR35 legislation. What this meant was that contractors working via umbrella companies would see their Travel and Subsistence expenses restricted. We wrote about the anticipated effects in our blogs about how these might affect contractors and advised you on the alternatives available. If you are concerned that you may still be affected by this change, then take a look at the blogs in the links above to find out more.

Budget:

Budget 2016, remained largely positive for the contractor market. Budget cuts were announced, however, the drastic changes expected to tax legislation and clampdowns on contractors and freelancers were not announced.

Most recently, the political landscape of the UK’s position in the European Union has changed. We were one of the first accountancy providers in the UK to talk about this and announce the results on our blog. We also asked you whether you thought Brexit would be good or bad news for contractors.

Trends:

Back in February, we provided you with our thoughts on what 2016 has in store for contractors. We also detailed the market trends for the IT contracting sector.

We have experienced a trend among many contractors who want to switch accountants as they weren’t happy with their previous provider. If you feel the same, find out how you can switch accountants here.

In addition, we’ve highlighted many other important news stories including the following:


Technology:

In January, we brought you the highlights and latest technology innovations from the Consumer Electronics Show in Las Vegas. From a roll away TV to the world’s lightest laptop, the show demonstrated truly great innovations by some world famous brands. Click the link above to look back at this blog.

You can also check out some of these car gadgets and see if there are any items in our top 5 list that you’d like to buy.

Branding and support for you and your contractor business:

Not only do we provide you with a high-level accountancy service but we also help you with advice, tips and support to make the most of your contracting career and limited company business. In January, we brought you the best methods to use for the promotion of your contractor business. One of the ways is to use Search Engine Optimisation to make your website visible in various search engines. You can find out more about our advice and tips on this here.

To help supplement the support we gave you for your contractor business, we brought you some social media tips and tailored them to contracting. Our blog broke down the various social media channels and explained how each one can help you grow your contractor business.

In order to help you work harder and smarter and implement the above website and social media changes, we published our favourite ways to stay motivated. Read our 6 best ways to stay motivated on this blog.

Personal Tax Returns:

You know the importance of filing your Tax Return on time, and the financial consequences of not doing so. However, did you know about the best way to save money on your Personal Tax Return? Our blog shares a special discount code on how to save up to £125 off the cost of your Personal Tax Return. You’ll benefit from the same specialised service and our team will meet your Personal Tax Return needs.

On top of this, we quickly brought you the news from the Autumn Statement 2015 and the Budget 2016 regarding the changes to dividend taxation. George Osborne announced that with affect from 6th April 2016, dividends would no longer receive a dividend tax credit. However, the first £5,000 taken as dividends by each shareholder of their company would be tax-free. The rest will be taxed at different rates. Find out more here about the new tax rules affecting dividend tax and how you can get ahead of the changes and still retain a higher take home pay with our services.

CIS:

With reports in the Budget showing a clampdown on Travel and Subsistence claims for umbrella companies, we thought it important to highlight the benefits of having a CIS registered limited company. In addition, we wrote about the further benefits and increased take home pay available for contractors who received gross payment status.

Events:

Attending industry events is a great way for contractors to improve their skills, meet new people and gather industry news and information. That is why we blogged about the top events to attend this year in the fields of:


Check out the blog relevant to your expertise, as there are still plenty of events coming up throughout summer and the rest of the year.

The future of contracting:

Going forward into the second half of the year, we will keep you updated on the changes affecting the contractor and freelancer industry. Our blogs will keep you informed on the latest announcements from HMRC, industry specific news and updates on your hobbies and interests too.

The best way to find out about our newest blogs is to follow us on LinkedIn. When we publish a blog, we’ll let you know on our LinkedIn channel so you can be the first to read it.

Alternatively, if you would like to know more about contracting, how we can support you with our payroll service or if you want to try our take home pay calculator, click the buttons below. You can also contact us via email by clicking here or by calling us on 01707 871622. Our team would be happy to answer your questions and guide you through the best options for your needs.

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