If you currently work as a contractor, are considering becoming a contractor, or own a business that hires contractors, IR35 is something that you should be familiar with.
Although the Chancellor, Rishi Sunak, previously announced that IR35 reform in the private sector would be introduced as planned on 6 April 2020, the Government has pushed this back amid the ongoing coronavirus pandemic.
Steve Barclay, Chief Secretary to the Treasury, announced on 17 March that reform will be deferred by a year – but made it clear it isn’t being cancelled. He said: ‘This is a deferral in response to the ongoing spread of COVID-19 to help businesses and individuals.’ It comes after a House of Lords finance bill sub-committee said that adding another burden on business would be ‘perverse’.
Private sector IR35 reform means that contractors and freelancers will no longer be responsible for working out their tax status. Instead, it’ll be down to the clients they work for (although smaller businesses are exempt from the change).
As businesses and the self-employed now face an uncertain few months, the deferral should at least give them more time to prepare for reform. Given the economic challenges that lie ahead of the UK, now certainly would not have been the right time to roll out needless tax changes that could endanger hundreds of thousands of contractors’ livelihoods.
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Strengthening the safety net for those who work for themselves
The Chancellor, Rishi Sunak, said he will ‘strengthen the safety net for those who work for themselves’ with a package of measures to support the self-employed and freelancers, offering improved benefits and tax deferrals.
Financial support for those impacted by coronavirus
Chancellor of the Exchequer Rishi Sunak unveiled unprecedented government aid for the self-employed. There are around five million people who are self-employed and freelance across the UK, and many will be relieved to hear that financial support is on the way to help those impacted by coronavirus.
Fraudsters are getting more sophisticated, particularly with investment scams. They can be articulate and financially knowledgeable, with credible websites, testimonials and materials that are hard to distinguish from the real thing. However, if it sounds too good to be true, it probably is.
Investments that best align with your financial goals
Without a plan, investors are prone to making knee-jerk reactions when there are swings in the market. A well-thought-out investment strategy provides the guidance needed to help you stay on track when inevitable market fluctuation occurs. It can also point you towards the types of investments that best align with your financial goals.
No renter in either social or private accommodation will be forced out of their home
More than a fifth of UK households live in privately rented accommodation. The Government has introduced measures to protect renters affected by coronavirus (COVID-19). This radical package of measures protects renters and landlords affected by coronavirus – and with these in force, no renter in either social or private accommodation will be forced out of their home.
How will you pay the bills if you were sick or injured and couldn’t work?
There is a growing unease about the economic fallout of coronavirus (COVID-19), with many businesses laying off contractors and putting staff on extended leave, as well as natural worries about contacting the disease.
Easing the stress some borrowers will be facing during the pandemic outbreak
Mortgage borrowers who have been adversely affected financially by coronavirus (COVID-19) may want to consider requesting to take a mortgage payment holiday on their residential or buy-to-let mortgage for up to three months to help their financial situation. The Government’s policy is aimed at easing the stress some borrowers will be facing during the pandemic outbreak.
COVID-19 pandemic has made more people think about just how crucial it is to make a Will
Since the outbreak of coronavirus (COVID-19), the number of people seeking to write new Wills has risen by over 30%, according to The Law Society. Understandably, the current situation is causing angst among people, particularly elderly and vulnerable clients who have been self-isolating. It’s estimated that more than half of British adults have not made a Will.
Projecting ourselves into the future to see what’s around the next bend is not an easy thing to do
Given the current situation during this difficult and unsettling time with coronavirus (COVID-19), it’s important to think about how secure your family’s or business’ future would be in the event that you were no longer around. Understandably, we would rather not think of the time when we’re no longer around, but this crisis has highlighted the importance of protecting the things that really matter – like our loved ones, home, lifestyle and business – in case the unexpected happens.
S4 Financial Ltd is an Independent Financial Advisory firm, which is authorised and regulated by the Financial Conduct Authority. S4 Financial Ltd is entered on the FCA register (https://register.fca.org.uk/) under reference 401372.