The autumn statement usually brings big news and this year is no exception. The biggest news in the contracting sector relates to Umbrella Company Workers, although they face no ‘immediate clampdown’.

The Personal Service Company (PSC) contractors, who usually find the chancellor aiming his cross-hairs at them, have escaped the usual wrath  in recognition of the looming and imminent IR35 review, which has been long-delayed beyond any reasonable excuse.

Many industry professionals feel that George Osborne did not want to distract from the IR35 review but could have “shifted the contractor tax landscape”.

While the publication of the review is expected in a matter of weeks, any contractor in operation through PSC will need to continue waiting until the publication date for “any real attention on how they operate”.

Autumn Statement 2015: What does it mean for contractors?

The contractors who work through an umbrella company arrangement now have a £2.8 billion tax avoidance crackdown scheme to contend with.

After the chancellor declared the outlines, he specifically stated that “We are also consulting on other measures including the use of so called ‘umbrella companies’ to deprive people of basic employment rights like the minimum wage and avoid tax.”

Furthermore, although only briefly referenced, a review will be held on what is deemed an “increasing use” of “overarching contracts of employment by umbrellas”.

“These arrangements enable workers to obtain tax relief from home to work travel that would not ordinarily be available. The government will publish a discussion paper shortly to inform possible action at Budget 2015.”

In the more immediate future, the government will stop tax relief from being “claimed on reimbursed business expenses, when they are paid in conjunction with a salary-sacrifice scheme.”

These moves by George Osborne do not come as a surprise to the managing directors of Umbrella or Contractor businesses. Endorsements for the Chancellors actions in these regards have arrived quickly, some claiming that this represents a ‘landmark moment’, one in particular that contractors have been asking ministers for.

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