Budget 2008

The Chancellor announced in Budget 2008 that the “Income Shifting” proposals will be delayed until Budget 2009.  For further advice and guidance on the draft legislation contact the Accountax Team.

As predicted by Accountax, now that the Managed Service Companies rules are in place, it is time for the Treasury to turn its attention to Umbrella Companies.  Paragraph 4.70 of the Budget Statement reads:

“The Government is concerned at the growing use of structures, such as “umbrella companies” or overarching contracts of employment with employment businesses, to obtain tax relief for travel expenses that would not be available to other workers. It will monitor the use of these structures and, if necessary, consider action in the future.”

This is only a warning shot across the bows of Umbrella Companies for now, and, as ever, the devil of such measures is in the detail.  Watch this space.

Accountax are Chartered Tax Advisers with very considerable experience in managed company matters and disputes;  We were the first tax consultants in the UK to have won IR35 Appeals at the Special Commissioners and have since won more than anyone else.

We are available for Managed Service Company advice on 08450 660 035 or by email to davidharmer@accountax-ltd.com