Autumn Statement 2013 – freelancers’ round-up

Freelancing, the self-employed and disguised employment

· Keep IR35 in place, to reflect the government’s intention to not make any changes to the Intermediaries legislation

· Strengthen the Agencies legislation (Section 44-47 of ITEPA 2003) to stop intermediaries avoiding employment taxes from using contrived contacts to disguise the employment of workers

· Take forward proposals to counter the use of LLPs disguising employment relationships and tax-motivated allocation of business profits to corporate partners

· Introduce a new power requiring taxpayers who are using avoidance schemes that have been defeated at court in another party’s case to pay the tax in dispute up front

· Adopt nine ‘quick wins’ on employee benefits and expenses by the end of January 2014

· Stick to the April 2015 alignment of the main rate of corporation tax with the small profits rate

· Shortly reveal the next steps to develop a simpler NICs process for the self-employed

· Consult soon on the exceptional circumstances in which HMRC will allow alternative options for VAT-registered businesses unable to file VAT returns online.

· Offer current pension savers who are self-employed an opportunity to make voluntary NICs to boost their income for retirement.

  Business, SMEs and industries

· Work with industry to ensure start-ups know how to benefit from R&D tax relief

· Ensure individuals make payments for private use of a company car or van in the relevant tax year, using incoming legislation

· Launch a programme of wholesale guarantees for SME loans

· Introduce a £1,000 maximum discount against business rates bills for retail premises with a rateable value of up to £50k, and offer a temporary reoccupation relief

· Publish in December 2013 a blueprint for helping small businesses

· Invest £5m in the National Film and Television Schools Digital village, so it becomes a “world-class training centre” to provide a “sustainable supply” of talent for digital and creative industries

· Open a £10m competitive fund to market test delivery of superfast broadband services to the most difficult to reach areas of the UK

· Expand Start-up Loans so it can support 50,000 additional start-ups

· Abolish employer’s NI for firms employing the under-21s (from April 2015)

· Next year, explore limited tax relief for commercial theatre productions

· Future tax exemption for employers paying up to £500 for staff medical treatment

· Extend Enterprise Allowance until March 2016

· Support visual effects companies by reforming the cultural test in the film tax relief code

· Reposition apprenticeships by funding employers directly, with a view to creating an additional 20,000 higher apprenticeships over the next 2 years

· Introduce a new tax relief for social enterprises and entrepreneurs.


· Roll back green levies, allowing for a potential £50 cut to energy bills

· Free school meals for all children in reception and years 1 and 2 in state education

· Cap train ticket price rises with inflation, not the planned 1% rise above inflation

· Commitment to abolish the cap on student places

· Raise the maximum ISA allowance next year to £11,800, up from £11,520 this tax year

· The amount of money to be earned before tax will notch up to £10,000 in April next year

· Plan to let some married couples and civil partners transfer £1,000 of their personal tax-free allowance to the other partner/spouse

· Fuel duty rise next year cancelled. 

Dec 6, 2013
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