With this year’s budget set to take place on Wednesday 24th March, those within the contractor marketplace are forecasting what Alistair Darling will set out in the budget that will affect contractors working through umbrella companies and also their own limited company.
Contractor UK believes ‘contractors should emerge relatively unscathed from the chancellor’s Budget on Wednesday, feeling as if they are neither winners nor losers’ but Contractor Calculator adds that those ‘expecting a pre-election giveaway Budget on Wednesday are likely to be disappointed’.
It is thought that no further anti-contractor initiatives are likely to be introduced or amended. “Announcements of major changes to the taxation of family businesses are not likely at such a politically sensitive time”, PKF said. Therefore, “it is expected that rules to block ‘income splitting’ will remain on hold”.
Leading advisors to freelance and contract professionals are due to comment tomorrow, (Tuesday 23rd March) on what they expect to see in Wednesday’s budget and Independent Contractor Services will update the news page with their forecasts.
