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Is The Government About To Kill Contracting?

Posted on 18/11/2015 by


It’s D day, on the 25th of November 2015, it’s rumoured George Osborne will announce changes that’s likely to kill the contracting culture in the UK. These changes will not come into effect until April 2016 but it could destroy a culture that’s been around for decades. An article in the Daily Mail credited these rumours, then an article in the Guardian gave distinctly more credit to the same claims (links below). The government is hoping to raise an extra £400 million in taxes but may cause a bigger problem for UK business’s and unemployment rates.

Will it affect you? If you are a freelancer or contractor has a limited company or umbrella company that takes on projects longer than 1 month. Yes.

What are the proposed changes? The government has threatened reforms on: end travel and subsistence tax relief, increase dividends taxation and toughen IR35 small business tax regulation. From any of all these angles this would make contracting near impossible at all pay levels.

What are the implications? If the rumours ring true the permanent job market will be flooded with people in 2016. That means it will be harder to find a role in any field with a contracting culture. Whilst business’s take time to react and re-allocate budgets this could mean a huge amount of people unemployed and projects falling behind due to losing contractors.

What can you do to help? Sign up to one of the many petitions:  

Or write to your local MP:

I’ve been working in the contract market for the past 5 years, barely a blink in many contractors eyes but I find this news extremely concerning. Please SHARE this article to raise awareness.