CIPR statement on Autumn Budget
In today’s Budget, the Chancellor signalled that the Government would not lower the threshold for VAT, as previous speculation suggested. The Government will also not be extending the recent public sector IR35 reforms to independent practitioners contracting to private sector clients.
Dropping the VAT threshold from £85,000 to £20,000 per year would have trapped huge numbers of small businesses into reporting VAT for the first time, and hit independent practitioners.
Rolling the IR35 reforms in the private sector would see independent practitioners taking another hit. Separately, these measures would have had a chilling effect on enterprise across the economy. Together they would have been a double whammy for independent PR practitioners.
We are very pleased the Chancellor has listened to the business community and that these measures are not being introduced. However, he has signalled consultations on both VAT and IR35. The CIPR will make sure the voice of PR’s SMEs and independent practitioners is heard.