The Chancellor of the Exchequer, Sajid Javid has announced that the major review of all aspects of self-employment, promised in the Conservatives’ manifesto, will include the proposed extension of the Off-Payroll working rules to the private sector from April 2020.

Speaking on Radio 4’s Money Box Election Special, Sajid Javid said that, as part of the review, he wanted in particular to look again at the proposed changes to the IR35 rules. He said:

‘I value the work of consultants and I want to make sure that the proposed changes are right to take forward.’

Internet link: economia news

The government has announced a 6.2% increase in the National Living Wage (NLW), which applies to workers aged 25 and over. From 1 April 2020 the NLW will rise from the current rate of £8.21 to £8.72 an hour, in the largest raise since it was introduced two decades ago.

The government has confirmed that the new rate will start on 1 April 2020 and will result in an increase of £930 annually for 2.8 million full-time workers earning the NLW.

Workers aged under 25 earning the National Minimum Wage (NMW) will also see increases of between 4.6% and 6.5%, depending on their age.

Bryan Sanderson, Chair of the Low Pay Commission (LPC), said:

‘The NLW has been an ambitious long-term intervention in the labour market. The rate has increased faster than inflation, faster than average earnings and faster than most international comparators.

‘This has raised pay for millions without costing jobs, although employers have had to make a variety of other adjustments to deal with the increases.’

Internet link: GOV.UK news

The government has announced it will make a number of changes to the loan charge rules, in response to Sir Amyas Morse’s independent review of the loan charge policy and its implementation.

The government has announced the following key changes to the loan charge:

• the loan charge will apply only to outstanding loans made on, or after, 9 December 2010
• the loan charge will not apply to outstanding loans made in any tax years before 6 April 2016 where the avoidance scheme use was fully disclosed to HMRC and HMRC did not take action
• affected taxpayers can elect to spread the amount of their outstanding loan balance evenly across three tax years: 2018/19, 2019/20 and 2020/21.

Please contact us for advice with this issue.

Internet link: GOV.UK independent loan charge review

Chancellor Sajid Javid has announced that he will deliver the 2020 Budget on Wednesday 11 March 2020.

The 2020 Budget will be the first to be delivered after the UK’s scheduled departure from the EU on 31 January 2020.

It is also Mr Javid’s first Budget as Chancellor, following the cancellation of last November’s planned Budget due to the General Election.

Commenting on the Budget, Mr Javid said:

‘People across the country have told us that they want change. We’ve listened and will now deliver.

‘With this Budget we will unleash Britain’s potential – uniting our great country, opening a new chapter for our economy and ushering in a decade of renewal.’

In the Budget announcement, the government said that it will prioritise the environment, and build on recent announcements to boost spending on public services and tackle the cost of living.

These include investing in hospitals, training new police officers, funding vocational education and increasing the National Living Wage.

We will update you on Budget announcements.

Internet link: GOV.UK Budget Date announced

We have announced the result of our employee of the year award today. Congratulations to Alex.

Alex was voted on by all staff members based on ‘as a colleague’ criteria. Well done from all at McGinty Demack.

Wishing all our Staff Clients Suppliers and Friends a Merry Christmas and Happy New Year.