01244 500 195 Mon - Fri, 8am - 5.30pm Why Us Contractors Agencies FAQs News Contact Join now Posted 29th October 2021 Autumn Budget 2021 – How will this impact contractors? On 27th October, Chancellor of the Exchequer, Rishi Sunak, unveiled the government’s 2021 Autumn Budget, a much-anticipated announcement that outlined what will be in place to ensure the UK economy recovers from the challenges that the COVID-19 pandemic has thrown at it. For the contracting industry, the pandemic, Brexit and the introduction of IR35 reforms for the private sector over the past 18 months have weighed heavily on the way in which they carry out work. Therefore, there were hopes that the Budget would contain good news. And, for the most part, it certainly delivered for contractors. According to the Chancellor, the economy will return to its pre-COVID state by 2022 and national debt is forecasted to fall in the next five years. Below, we take a look at some of the key points from the Autumn Budget that will affect contractors. No mention of IR35 Since IR35 reforms were introduced in April of this year for medium to large businesses, the contracting industry has been waiting with baited breath for HMRC to suggest this will be extended to include small businesses also. The fact that there was no mention of IR35 during the Budget means that the government does not (yet!) have plans to extend reforms, a huge relief to countless organisations and contractors throughout the UK we’re sure. Fuel duty freeze A planned rise in fuel duty has been cancelled, meaning that it has been frozen for the 12th consecutive year. Increase to minimum and living wage For contractors on lower hourly rates, a fairly significant increase to minimum and living wage is a welcome announcement. From April 2022, the following changes will come into force: National Living Wage (23+) – Rising from £8.91 to £9.50 an hour National Minimum Wage (21-22) – Rising from £8.36 to £9.18 National Minimum Wage (18-20) – Rising from £6.56 to £6.83 National Minimum Wage (Under 18s) – Rising from £4.62 to £4.81 Increase to NIC Announced prior to the Budget, from April 2022 there will be a 1.25% increase to NIC deductions and dividend tax rates. If you have any queries on how the announcements made in the Autumn Budget will impact you, speak to the Exchequer team today on 01244 500 195. Share article Share Tweet Share Email Other articles and guides you may be interested in... 23rd November 2021 MD Mike is elected to the FCSA Board Read more 11th November 2021 Exchequer sponsors fundraising rugby match Read more 12th October 2021 What is the contractor Loan Charge? Read more Get in touch 1st Floor, The Exchange, 1 St John Street, Chester, CH1 1DA 01244 500 195 info@exchequersolutions.co.uk Reg Number: 04749739 Latest News & Updates Sign up to our newsletter Links Privacy Policy Cookie Policy Modern Slavery Statement Website by © 2021 Exchequer Solutions Ltd