Danbro, the specialist accountancy firm for contract and freelance workers, says it is business as usual for contractors following the Chancellor's pre-budget report.
Following several consultation papers released by HMRC throughout 2009, many contractors had feared that the government was about to re-introduce income-shifting proposals and introduce measures to tackle 'false self-employment', but regulations remain unchanged following Wednesday's announcement.
National Insurance contributions (NICs) are set to rise by a further 0.5% in 2011, but will increase in line with the Retail Price Index until then. And although VAT rates will, as predicted, return to 17.5 % on January 1, no other changes to VAT are being made.
Damian Broughton of Danbro said: "This pre-budget report is going to be a relief for contractors who feared that the Chancellor would hit them hard in the pocket.
"It has been good news for Limited Company contractors, with Alistair Darling announcing that the proposed 1p rise in corporation tax is to be deferred.
"In fact, only the very highest earning contractors are likely to be significantly affected, with the top rate of tax for people earning more than £150,000 rising to 50% as of April next year."
For more information visit Danbro on: www.danbro.co.uk