The UK tax year runs from 6th April to 5th April the following year, which means the new tax year of 2017/18 is starting soon on Thursday 6th April. As a contractor and businessperson, there are things you can do to prepare for the new tax year and set yourself up for success.
It appears that Chancellor Philip Hammond has set his sights on the self-employed as he aims to extinguish “tax-motivated incorporation”, announced in Budget 2017 today, 8th March.
The clauses for Finance Bill 2017, published Monday 20th March, details the new rules for how the intermediaries legislation (IR35) will be determined for public sector contractors and freelancers working through a personal service company (PSC). The new rules come into effect on 6th April 2017 and affect payments made on or after that date.
Working through an umbrella company is the easiest way to operate as a contractor and once you have signed up, you will have a minimal amount of ongoing administration. However, do you know how an umbrella company actually works? Read our article to find out more about the processes involved when you sign up with an umbrella company.
The Spring Budget was announced last Wednesday, 8th March. It sparked plenty of backlash around measures to increase tax revenue from the self-employed, particularly the Chancellor’s plan to increase to Class 4 National Insurance Contributions (NICs), which has now been cancelled.