The uncertainty surrounding Brexit has caused headaches for contractors working in all industries. Many UK contractors are spending sleepless nights worrying not only about Brexit but issues like IR35 reform too.
Working as a contractor or freelancer can be a rough ride at the best of times, with many people agonising over the pros and cons that come with being your own boss versus being directly employed. Though contracting is frequently linked to a lack of security and stability, it is also renowned for its vast income opportunities, flexibility and freedom.
Positives and negatives of Brexit
There has been plenty of speculation about big-name employers using contractor services pulling out or threatening to pull out of the UK market due to Brexit.
Nonetheless, Brexit may well offer a number of positives for UK contractors, such as reduced competition from EU migrants, which could result in higher wages due to skills shortages. Sectors such as compliance and finance may well be boosted by Brexit due to the number of companies seeking to protect themselves from the potential pitfalls of any outcome.
Other Important Issues
A consultation over the forthcoming changes to IR35 is to be launched by HMRC, prior to implementation in 2020. This consultation is designed to enable contractors and other stakeholders to supply feedback on the potential outcome of the legislation so a positive result can be delivered.
The 2019 Loan Charge is also a concern for many contractors being instructed to pay tax after taking out loans deemed to be tax evasion or avoidance. A considerable number of contractors have been involved in such schemes over the past few years, with some arguably being duped by advertising which failed to acknowledge the risks attached.
Up to 60,000 individuals could be instructed to hand over the tax to HMRC. Contractors are being urged to enter into settlement arrangements with HMRC or take action against advisors.
Don’t Delay Decisions
As you can see, there are currently many issues affecting UK contractors. Despite the turmoil and confusion related to Brexit, it’s essential to remember that business goes on.
Don’t wait too long to make vital decisions on accounting and budgeting. At the time of writing, sources have just revealed that Brexit itself could be delayed for a further two years, so it’s vital that UK contractors do all they can to carry on as they normally would despite the uncertainty that surrounds them.
Weathering the Storm – Contact OCG Today
At One Click Group, we are here to provide all the accountancy and tax support that you need as a UK-based contractor. We have many years of experience behind us and are eager to provide you with all the assistance you require to help you weather the storm whatever happens.
To find out more about what makes us the right tax and accountancy service for you, contact us today. You can reach us by sending a message through the website, by calling 0345 557 1287 or by emailing email@example.com
Along with over 13 years experience in the contractor payroll industry, and after spending most of his working life as a financial advisor in the regulated financial services industry, Mike has garnered an extensive network of contacts in the recruitment industry, many of whom trust both him and the One Click Group to handle their accounting. Mike has also been a member of various industry bodies throughout the years, such as the British Institute of Recruiters, in order to champion best practices across the contractor payroll industry.