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IR35: Reviewing Previous Years’

Q. I work in the private sector and, along with other contractors, are preparing for the introduction of the same IR35 legislation in the public sector.One question I have is that, if placed within IR35 legislation by the client, could HMRC review previous years of working? I...

Something to Declare?

HMRC periodically run campaigns or disclosure opportunities for taxpayers who might have underdeclared their tax liabilities and thereby encourage such people to make disclosures sooner so as to reduce interest and penalties and not undergo a formal investigation. During the la...

Taking the Strain

A recent report published by the House of Commons Work and Pensions Committee, titled ‘Self-employment and the gig economy’, concludes that the facade of self-employment recently highlighted in the gig economy is placing an unsustainable burden on the welfare state...

Public Sector Changes: Self Employed Teacher

Q. My friend is a self employed yoga teacher. She works at 6 different places during the week - but does two half days at a school. Today she was told (out of the blue) by the school that because of IR35 she can no ...

Expenses and benefits – what to report

For those that have not done so, contractors will need to consider what expenses and benefits they need to report to HMRC by 6th July 2017.The expenses and benefits regime underwent a transformation as from 6th April 2016 which saw:

  • Scrapping of the notion of a...

Redundancy pay for sole directors

There is a widely held view and common belief that company directors are not entitled to redundancy pay but in limited circumstances it may be possible.When a business fails and has to go into liquidation, directors, who have invested time, sweat and money in trying to esta...

Q&A: Relevant Critical Illness & Life Policies

In this week’s article, we’d like to share some commonly asked questions relating to Relevant Critical Illness & Life Policies from our contractor clients;Q. Can I take this cover with me if I stop Contracting? A. Yes, if you decide to hang up your contractor hat, th...

Keeping your savings tax-free

Interest savings rates have been low for quite some time now, so when deciding on where to invest your hard earned cash your priority is more likely to be the best interest rate and return on your investment rather than the tax implications of the savings vehicle. However, the ...

Tweak to off-payroll rules

A late amendment to Clause 7, Schedule 1 of Finance Bill 2017 has been made which will see certain private sector businesses excluded from the IR35 off-payroll rules.The definition of ‘public authority’ has been amended to correct a technical error which unintentionally...

Majority of Finance Bill on Ice

Following discussions with the Opposition, the government are to remove a majority of the Finance Bill clauses and schedules but, unfortunately, the wretched off-payroll rules is not one of those.At 762 pages, the current Finance Bill is the longest on record and would have...

Points Don’t Mean Prizes

HMRC has recently become aware of a tax avoidance scheme that attempts to avoid Income Tax and NIC by paying contractors in the form of redeemable loyalty points. Needless to say, HMRC is of the opinion that the scheme does not work and has published details in their Spotlights...

Requirements as a Sole Trader

Q. I've recently returned to work and I am currently a self-employed advisor. I am working with a client but there are no pre-agreed hours or days in our contract - we agree the work required depending on what is needed and my availability. I invoice at the end of each month and ...

Critical Illness Cover Don’t Leave It Too Late

In this week’s article, we want to expand on a response received after our last posting and to highlight the need for critical illness cover. Unfortunately, 1 in 2 of us will be diagnosed with a critical illness during our lifetime, if you don’t have critical illness cover in...