What did the Autumn Statement tell us?
Well the Autumn Statement finally arrived yesterday amid a very nervous market with many expecting the apocalypse to hit our industry!
So what did the AS tell us? In reality not a great deal. It certainly wasn’t as Qdos Consulting gracefully put it, the “Bloodshed” many thought it would be.
So first the good news. The Chancellor did not press forward with plans to put Personal Service Companies on payroll as many had feared. A huge sign of relief for the temporary workforce in general not to mention Recruitment Agencies up and down the country!!
The bad news? The Chancellor confirmed in 3.20 of the AS that Travel & Subsistence allowance would be restricted as announced earlier in the year. Whilst a blow, it was something the majority of us were expecting.
However many questions remain unanswered, which will still mean a period of uncertainly for the temporary workforce.
Whilst the Chancellor did not implement the PSC payroll plan, this does not mean that this wont happen, and indeed many still think that this will be implemented in the future.
Regarding the reform of IR35, again this was a notable omission and when HMRC was asked when we could expect a response to the IR35 Discussion Document, the response is that they are still “considering responses”.
So I think its fair to say that yesterdays AS was not the crushing announcement so many feared and expected, it has still left more questions then it gave answers, answers that will no doubt be revealed in the coming days and months.
My advice to everyone is stay tuned, there is still plenty more to come!!