Autumn Statement – Contractors and Small Businesses Yesterday, 3rd December 2014, saw the Chancellor George Osborne deliver his Autumn Statement, which is the Chancellor’s summary on the state of the economy and the taxation, benefits and spending plans for the forthcoming tax year (starting 6th April 2015). It is very similar to the Budget itself and within the statement there are several key changes that affect all tax payers and as such, contractors alike. As well as these changes the Statement sees some that will affect Umbrella Companies for the Tax Year 2015/2016 (6th April 2015 to 5th April 2016) and unless stated otherwise those changes affecting Umbrella Companies included in The Chancellors Statement are as below: 1.251 As part of its reform of the rules for employee benefits and expenses in response to recommendations by the Office of Tax Simplification, the government will stop tax relief from being claimed on reimbursed business expenses when they are paid in conjunction with a salary sacrifice scheme. The government is also concerned at the growing use of overarching contracts of employment by employment intermediaries such as ‘umbrella companies’, which allow some temporary workers to benefit from tax relief for home to-work travel expenses that is not generally available to other workers. The government will review these arrangements and publish a discussion document inviting representations from interested parties to inform potential future action. ePayMe Managing Director, Andrew Johnston says ‘although this has been addressed previously and in an attempt to flush out the unscrupulous providers still offering pay day by pay day schemes or in fact blatent salary sacrifice solutions, I am certain the approach is more to unify the Umbrella sector and ensure all players are on the same pitch. We have built our business on providing the very best customer service and pride ourselves on the highest levels of HMRC compliancy to ensure our future is strong, as well as those who work with us’ 2.147 Overarching contracts of employment and temporary workers – The government will review the increasing use of overarching contracts of employment by employment intermediaries such as ‘umbrella companies’. These arrangements enable workers to obtain tax relief for home to work travel that would not ordinarily be available. The government will publish a discussion paper shortly to inform possible action at Budget 2015. As a member of All Umbrella Companies Are Equal, ePayMe, who carry the ‘Straight Talking’ logo are working together with all other members towards unifying practices within the industry and as an on-going practice, aim to ultimately deliver uniformity and compliance across the whole sector. With the above in mind, you can rest-assured that ePayMe are operating compliantly in all that we do and under no circumstances offer these so called ‘Pay Day By Pay Day’ solutions to our workers. Furthermore and in respect of clause 2.147 above, at this moment in time it is only to be discussed and to inform of any possible action at the spring Budget. ePayMe’s stance is clear in that as a fully compliant company, operating within HMRC and Tax and Employment Law legislation, we will not fall foul of any changes that are likely to be made unlike other less scrupulous companies that are out there in the market place. Written by Neil Baigent, Compliance Manager – ePayMe