With 2017 now complete we have reflected on what the year held for contractors in the UK, and now we are looking ahead at what 2018 may mean for the contracting industry. There will be a number of legislative, employment and industry development changes in 2018. Our article explores what we will expect to see over the next 12 months.
Contractors will see some benefits to their income in 2018. The National Living Wage will rise to £7.83 meaning that contractors working on lower paid contracts will be somewhat better off come April 2018, as well as a rise in personal tax allowance from £11,500 to £11,850. On top of this, fuel duty has been frozen for 2018-19 which will save contractors an average of £160 a year.
Opportunities for contractors
With the announcement of the Autumn Budget on 22nd November 2017, the government has announced a number of initiatives which will subsequently lead to a number of opportunities for the contracting community. Investment will largely benefit those working in the construction industry, with significant investment planned for housing and major construction projects for the HS2 railway are to begin in 2018.
Developments for contractors
A rise in demand and potentially more income may lead to more contractors choosing to set up their own limited company to become more tax efficient under their higher rates of pay. There are numerous other benefits to this, one of the major draws of setting up a limited company is the added control that a contractor will gain over their finances and working life in general.
Impact of Brexit on contractors
The subject of Brexit has produced a great deal of uncertainty amongst contractors, largely due to the fact that there is no concrete answer to what exactly Brexit will mean for the industry. Reports have, however, found that IT contractors saw a rise in hiring in the six months following the Brexit vote, and there has been some suggestion that there will be more demand for contractors over the coming years as employers sway more towards temporary contracts.
2018 looks to be a positive year for contractors across the UK. If you are looking to reap the benefits of contracting, get in touch with the Sterling team today to register.