Tax & IR35 News

Volunteering to pay tax

HMRC consult on pay as you go

As part of the Making Tax Digital project, HMRC are looking at a voluntary pay-as-you-go (PAYG) arrangement that would give businesses the opportunity to budget towards their tax bills.

Read more...

Public sector turn their noses up

HMRC’s planned IR35 reform cuts no ice with public sector

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The Government’s consultation on IR35 reform in the public sector closed last week but it appears that it is not just the contracting community who are opposed to the proposals.

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Phone’s off the hook but you’re not

Poor telephone service pays dividends for taxpayer

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HMRC failed to make a VAT penalty stick in a recent First Tier Tax Tribunal hearing, McNamara Joinery Ltd v HMRC, because of its woeful telephone service.

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Salary sacrifice at the altar

Government to restrict practice of giving up salary for benefits

Following the Budget 2016 announcement that the government would consider limiting the range of benefits that attract income tax and NIC advantages when provided as part of a salary sacrifice arrangement, a consultation document has now been released: Consultation on salary sacrifice for the provision of benefits in kind.

Read more...

IR35: How to ensure you are operating compliantly

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With 4 specialist IR35 teams committed to tackling 250 enquiries at any one time, IR35 experts Qdos Contractor, are holding a live event on 31st August to tackle the most common question when it comes to the IR35 legislation – how do I ensure I am operating compliantly?

Read more...

Penalties now automatic for employment intermediaries

Late returns incur immediate fine

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Employment intermediaries have, since April 2015, had to file returns detailing those whom the intermediary believes it has a legitimate reason for engaging workers on a self-employed basis.

Read more...

Limited liability for sole traders

OTS examine merits of the Sole Enterprise with Protected Assets

The Financial Secretary to the Treasury has given the Office of Tax Simplification (OTS) the green light to further explore a Sole Enterprise with Protected Assets (SEPA) model, which would provide protection for one or more assets of a self-employed individual.

Read more...

Full steam ahead

Government confirm commitment to IR35 reforms in public sector

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The consultation document, ‘Off-payroll working in the public sector: reform of the intermediaries legislation’ is due to close on 18th August but the Government have made it clear that their proposed reforms will go ahead in April 2017 as planned.

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Contractor Doctor

Public Sector: IR35 Concerns

Q. I am in a public sector IT contract. I had a IR35 contract review that was deemed outside. My working practises have not been reviewed.

Is it wise to continue working with the same contract for my client beyond April 2017 given the risk of being found inside IR35.

I am concerned HMRC might take a closer look at my engagement prior to April 2017 and send a demand for PAYE and NIC. Is this irrational?

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Am I inside or outside IR35?

Q. I am a Locum Pharmacist working in the NHS. I want to ascertain as to whether I am in or outside the IR35 legislation. Please can you advice me as it is very worrying.

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Agency Returns

Q. I'd like ask about the HMRC intermediaries quarterly report that CW reported, Penalties now automatic for employment intermediaries.

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Investing in a New Business

Q. I know someone who is intending to start a new business, selling wine both online and at a high street shop. I would like to use my limited company's money to invest in his new business. As I've seen on TV, I would buy say 10% of his business for £10k. I would create his website / manage his IT. Then at some point in the future he would pay back; perhaps as dividends paid to myself / my limited company. What are options or pitfalls here? Is it just a bad idea to have one company invest in another?

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Terminated Contracts

Q. My agency terminated my contract with no notice whatsoever, in breach (I believe) of the contract between us, and furthermore are refusing to pay any notice period, claiming "only worked days are paid". I believe the contract requires them to give the proscribed period of notice of termination, which they did not do. As a result I am significantly out of pocket because of travel & accommodation expenses etc. The agency are now being evasive & uncommunicative (seems like they're ignoring me in the belief/hope that I'll give up & go away). What steps can I take to force the agency to abide by their contractual obligations?

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New to Contracting

Q. I work in Fin Serv, I'm leaving employment and new to contracting - looking to pick up my first contract over the next couple of months. Where can I get help/hints on writing an effective business profile and where would I find a list of agencies and job sites to post my availability on?

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Contract Amendments: Rate Reduction

Q: My client verbally informed me on the 7th June that the day rate would have to be cut by 10% by the 20th June. I have since received a letter on the 28th June confirming the 10% rate reduction is to be applicable from the 21st June. As I received no official communication until the 28th June, can this rate be backdated? I have not received a contract amendment to confirm the new rate reduction. Should this contract amendment be in place before I can accept the rate reduction?

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Making Tax Digital

Q. If travel & subsistence is going to be allowable on some contracts & not on others & HMRC is to press ahead with Making Tax Digital, it will be interesting to see how the much heralded "free" software that will enable all business to computerise their accounts will handle this. The proposal is that the software will enable the business to send in 4 tax returns a year, to keep their tax fully up to date. This is apparently a labour saving initiative by HMRC. You could not make it up.

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Tax & IR35 News

Volunteering to pay tax

HMRC consult on pay as you go

As part of the Making Tax Digital project, HMRC are looking at a voluntary pay-as-you-go (PAYG) arrangement that would give businesses the opportunity to budget towards their tax bills.

Read more...

Public sector turn their noses up

HMRC’s planned IR35 reform cuts no ice with public sector

stats icon

The Government’s consultation on IR35 reform in the public sector closed last week but it appears that it is not just the contracting community who are opposed to the proposals.

Read more...

Phone’s off the hook but you’re not

Poor telephone service pays dividends for taxpayer

busy icon

HMRC failed to make a VAT penalty stick in a recent First Tier Tax Tribunal hearing, McNamara Joinery Ltd v HMRC, because of its woeful telephone service.

Read more...

Salary sacrifice at the altar

Government to restrict practice of giving up salary for benefits

Following the Budget 2016 announcement that the government would consider limiting the range of benefits that attract income tax and NIC advantages when provided as part of a salary sacrifice arrangement, a consultation document has now been released: Consultation on salary sacrifice for the provision of benefits in kind.

Read more...

IR35: How to ensure you are operating compliantly

ir35 icon

With 4 specialist IR35 teams committed to tackling 250 enquiries at any one time, IR35 experts Qdos Contractor, are holding a live event on 31st August to tackle the most common question when it comes to the IR35 legislation – how do I ensure I am operating compliantly?

Read more...

Penalties now automatic for employment intermediaries

Late returns incur immediate fine

error icon

Employment intermediaries have, since April 2015, had to file returns detailing those whom the intermediary believes it has a legitimate reason for engaging workers on a self-employed basis.

Read more...

Limited liability for sole traders

OTS examine merits of the Sole Enterprise with Protected Assets

The Financial Secretary to the Treasury has given the Office of Tax Simplification (OTS) the green light to further explore a Sole Enterprise with Protected Assets (SEPA) model, which would provide protection for one or more assets of a self-employed individual.

Read more...

Full steam ahead

Government confirm commitment to IR35 reforms in public sector

ir35 icon

The consultation document, ‘Off-payroll working in the public sector: reform of the intermediaries legislation’ is due to close on 18th August but the Government have made it clear that their proposed reforms will go ahead in April 2017 as planned.

Read more...

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