Contractors are no doubt aware that the government recently changed the rules on the amount of money people can put aside in a pension scheme and still benefit from tax relief. It used to be £225,000, but earlier this year chancellor Osborne reduced that to a mere £50,000 per year.
Although the new tax changes have been widely publicised, it appears that a lot of people, including umbrella company contractors, are still unaware of the effect they will have on their personal finances.
Contractors may want to take the advice of the Nationwide and use their ISA tax relief allowance for this year before it runs out.
The OTS has now identified 47 out of 1,042 tax reliefs that could be abolished and a further 17 that could be simplified. It’s long awaited report was published last Thursday.
Amendments to the National Minimum Wage Regulations came into force on the 1st of January this year and umbrella company contractors should be aware of their implications.
Tax experts have said that tax relief reforms should be implemented in conjunction with a reform of the actual rates of taxation.
Tax experts have applauded the government’s grown up approach towards creating a more stable tax system.
The Office of Tax Simplification was officially established by George Osborne and David Gauke, the Exchequer Secretary, on Tuesday.
The government’s decision to scrap video game tax relief has caused both Sony and Activision Blizzard to reconsider investing further in the UK, a development that could affect umbrella company contractors.
