As always, there’s lots going on in the world of contracting. Here are some of the top updates from the industry to keep you up to speed.
New Tax Year changes
April 5th marked the new tax year which brought a number of key tax changes for the self-employed. Of particular importance for the self-employed were the changes to personal allowance, which increased to £11,850, and the dividend rate which reduced to £2,000.
You can find a full rundown of the changes and what they could mean for you here.
Making Tax Digital updates delayed
The digital reforms to tax which were announced in 2017 are set to streamline the filing process and means that individuals and businesses will no longer be required to submit a self-assessment return.
However, these updates have been delayed for individuals to give attention to the impending Brexit changes and means that the government’s plans are unlikely to be actioned until 2019. HMRC have stated that these delays will not thwart their ambition to become the most digitally advanced tax authority. It has also been announced that these changes will not impact digital services to businesses, with mandatory VAT reporting being rolled out in April 2019.
You can learn more about Making Tax Digital and what this could mean for your limited company here.
Self-employed concerned about lack of savings
A new report by Demos has revealed that though the majority of the self-employed (almost 80%) are happy with their lifestyles, 46% of the respondents revealed that they are concerned about their lack of savings. Additionally, 38% of respondents admitted that they were concerned about the current system of pensions for the self-employed.
Following this research, Demos has urged the government to extend its pensions plan to the self-employed. Currently, just 17% of the self-employed are contributing to a pension, compared to 50% of permanent employees. They believe that the self-employed lifestyle should be encouraged as they play a large role in the growth of the economy.
You can download your full copy of the report here.
The future is self-employed
A study conducted by Talent Partners has revealed that only 29% of recruiters believe that permanent employment will be the default option in the future.
The study also suggests that the gig economy is likely to grow quickly. Chartered Institute of Personnel and Development (CIPD) have estimated that the portion of the UK’s workforce in flexible employment is around 50% and the Office for National Statistics estimates that the number of self-employed workers in the UK stands at 4.8 million.
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