The Budget - Recruitment trade body responds Wednesday 8 July 2015 PDF Print Responding to George Osborne’s budget speech, Samantha Hurley, Head of External Relations and Compliance at The Association of Professional Staffing Companies (APSCo) says: “Mr Osborne made a number of announcements in relation to employment taxation and National Insurance which are relevant to the professional recruitment sector including, of course, the anticipated consultation on travel and subsistence tax relief. The Government proposes removing tax relief on home to work travel and subsistence for those workers who are engaged through an employment intermediary, and who are subject to supervision direction and control. As we have commented previously, APSCo feels that this appears to be a reasonably sensible way forward, and this approach will bring this tax relief in line with IR35 legislation and the 2014 changes to the Income Tax (Pensions & Earnings) Act.” “The Chancellor also announced that while Government recognises that many individuals choose to work through their own limited company, it feels that the current IR35 legislation is not effective enough and has asked HMRC to start a dialogue with business on how to improve the effectiveness of the existing IR35 legislation. APSCo is due to meet with the IR35 Forum in two weeks’ time and this will obviously be a major topic for discussion.” “The simplification of the tax credit system for dividends which is due to be implemented from April 2016 could well have a significant impact on those people working through a personal services company. The Government is planning to replace the system with a dividend allowance of £5,000 with dividend tax rates then of 7.5% for basic rate taxpayers, 32.5% for higher rate and 38.1% for additional rate taxpayers.“ Ends Tracey Barrett BlueSky PR 01582 790702 email@example.com This press release was distributed by ResponseSource Press Release Wire on behalf of BlueSky Public Relations Ltd in the following categories: Personal Finance, Business & Finance, Education & Human Resources, for more information visit http://pressreleasewire.responsesource.com/about.