Following on from our previous post regarding the outcome of 2024 UK Budget, let’s have a look at how changes may impact our contingent workforce.
Construction Market
A £5 billion fund is earmarked to support a housing plan aimed at building 1.5 million homes over the course of this Parliament. Additional funding has also been committed to the construction of affordable homes, ensuring continued demand for skilled workers in the sector.
Changes to Tax and National Insurance
For employees working through Umbrella companies, the increase in Employer National Insurance contributions will likely impact their gross pay. Additionally, the reduction of the threshold from £9,100 to £5,000 is likely to result in lower gross income for performing the same work so we can anticipate higher assignment rates to attract and retain valuable workers.
Making Tax Digital for Income Tax Self-Assessment
Following the Budget, the government has confirmed plans to extend MTD for ITSA to self-employed individuals earning over £20,000, though a specific rollout date has not yet been announced. Stonebridge will keep updated on this matter so we are ready to assist our contingent workforce.
Increased Compliance
Stonebridge remains confident in our robust approach to IR35 determinations, which we review routinely with our advisors. As the government intensifies its efforts to further tax compliance and enforce IR35 regulations, we can expect heightened scrutiny over employment status and are well placed to ensure compliance within our chain.
Implications For Our Contingent Workforce
The changing landscape outlined in the budget presents both challenges and new opportunities for our contingent workforce. Whilst improvements in training and digital transformation are positive developments, changes to tax, National Insurance, and compliance requirements may result in increased costs, including more administrative work and time. These compliance changes will require careful due diligence and preparation, which Stonebridge is committed to providing.
We will ensure that our client and operatives are kept informed and supported in adapting to these changes, maintaining compliance and ensuring fair engagement throughout our supply chain.
If you have any questions or concerns about how the budget may impact your business, please feel free to reach out to us at compliance@sbcontracting.co.uk.
Commenti