The UK is still reeling from the decision on Thursday and possibly now feeling the rising concern as the pound and the markets plummet. But let’s remember that while all of the chaos goes on around us, we all still have businesses to run and need to now make rational decisions to push them in the right direction.
As of now, what is clear is that nothing from a worker or taxation perspective is going to change in the short term. Hence, our immediate decisions need to be based on that. We anticipate that the new Government and the Autumn Statement will provide us a clearer view on whether or not the current plans to change the intermediary legislation from April 2017 will be enacted.
It is here we will discover changes in taxation, and any review of the plans that were in progress for limited company contractors, umbrella companies, IR35 and so on.
So, how will the changes affect you?
Agencies and contractors working in the healthcare sector will inevitably see very little change as hospitals and GP practices continue to operate and need workers. However, those agencies entrenched in just one sector might want to look at expansion into other areas. For contractors, on the other hand, this period of uncertainty may drive greater use of them as businesses hesitate to invest in permanent employees.
Please note that a long period of uncertainty will be damaging to the economy; but we know this is well known by the city. Moreover, anyone calling the HMRC helpline has been told: “There are no changes to any taxes, tax credits, child benefits or other HMRC services as a result of the vote on the EU referendum. Everything is continuing as normal. No laws have changed. There is no need to contact HMRC as a result of the EU referendum.”
Therefore, we need to chin up and drive as much certainty as we can into our own businesses, and as the saying goes, ‘keep calm and carry on’.
As always, we will keep you updated regarding any firm news or information we have which directly affects our area of business but if you would like to have a discussion at any point, please do not hesitate to contact our Tax Helpline on 0203 507 0022.