Contracting Matters

Aside from the usual Budget details what was the important stuff for Contractors and Agencies?

Chancellor Darling at least deferred the income shifting plan until 2009 but it still means for some Contractors that run Limited Companies that some of the benefits of being able to have for example husband and wife shareholders, will be under threat. As we have seen with other legislation it may allow the Government to fine tune the law or perhaps see the proposals shelved? I would not put a big bet on the latter.

Under the excitingly entitled “anti avoidance measures” there was much less good news for Contractors using certain trading models. Sole Trader, Isle of Man partnership and trust schemes have all been identified and loop holes closed. Whilst the owners running those types of businesses will be reassuring clients and Agencies, it has always been an aim of HMRC to stop the practice.

Umbrella Companies also got a mention! Within the avoidance measures came a comment around ensuring that Expenses are not abused. I welcome this attention as in reality some sharp practices have harmed the Recruitment industry and Contractors. Parasol Contractor employees and Agency partners have nothing to fear, we have always run our business on very ethical and compliant terms. We have spent over 8 years developing a focused professional employment model and will continue that process into the future.