Draft legislation published in this week’s finance bill will finally establish whether the government will drop its supervision, direction and control (SDC) proposals that would prevent umbrella users claiming travel and subsistence (T&S), a leading IR35 advisory has claimed.
Former tax inspector and co-founder of Bauer & Cottrell, Kate Cottrell, believes there could yet be a sting in the tail for flexible workers regarding the big issues that were previously mentioned in the 2015 summer budget but were absent from Chancellor George Osborne’s autumn statement last week.
A letter from David Gauke, the Treasury minister, to the Officer of Tax Simplification also made no mention of SDC or the ‘one-month-then-payroll’ plans, despite clarifying a fresh approach to overhauling employment status ahead of the new tax year.
Ms Cottrell says that contractors could finally find out the answers on Wednesday, when the latest draft legislation is due out, and has urged the flexible workforce to consider its position carefully after the new information is disclosed.
Ms Cottrell, added: “Draft legislation [is] due out on 9th December … [only then can PSCs] see if the SDC proposal has been dropped or if the decision has been made to simply stop T&S for umbrella users and for those in PSCs inside IR35.”
She continued: “My message to contractors, as always, is to consider their positions, especially if they are reliant on relief for T&S and their contracts go past April 2016. Now is also the time to consider their IR35 positions … to establish what potential financial risks they are facing in the future.”