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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...

Speaking the (Status) Lingo

For many of those unfortunate contractors selected for IR35 enquiry, they face an uphill battle in getting their end client onside, due to a reluctance and resistance to get involved with HMRC. Even when they do, their representative may unwittingly use employment terminology i...

Shape of Things to Come?

Despite tax changes announced in 2014 and 2015 Budgets, HMRC’s tax return software can’t cope with the intricacies of the taxation of investment income and won’t be able to fix the problem until next year!The complexity of the changes to the taxation of dividends and ...

Contractor Expenses

Q. I've been paid off from my last job and work on contracts mostly, I was PAYE on my last job and now unemployed. I worked away from home a lot and had to pay for everything out of my own pocket , is there any way I can recoup any expenses that I incurred?A. If you were oper...

Can my wife’s income be retained as company profit?

Q. My wife has been offered a freelance advertising contract, with the stipulation that she engages them via Ltd Company. We would not need my wife's earnings to live off. If she was deemed to be inside IR35, is it feasible for her to draw zero (or minimum) salary and for the inc...

Am I on the government’s radar regards IR35?

Q. I am undergoing SC clearance and there are a number of questions that go into your business dealings for the last five or so years. Whilst I have nothing to hide, my concern is that this will put me on the government's radar as regards IR35. Have you heard of any cases where a...

Will status changes as a result of the public-sector guidelines incur an IR35 enquiry?

Q.  I've been contracting to my public-sector client for a number of years and they've just deemed me to be inside IR35 under the new intermediaries legislation. There are two agencies between myself and my client. I agreed to work until 31st March and was assured payment by 5th...

At Your Own Expense – employee expenses

Employee expenses are an integral part of the tax system, as tax relief can be claimed on eligible expenses incurred whilst employees are doing their job. Broadly tax relief is available when expenses are incurred ‘wholly, exclusively and necessarily in the performances of th...

Uncomplicating the UK Tax System – OTS

The Office of Tax Simplification (OTS) has been in existence since 2010 and since then has been carrying out sporadic work on its ongoing project that looks at the reasons why our tax system is complex. During its first five years, the OTS published a number of papers on the su...

Minimum wage scheme – how will IR35 affect me?

Q. I am a ltd company but operate on a minimum wage scheme and most of my money is made up of expenses and dividend payment.How will ir35 affect me from the 6th of April?A. This will depend on your circumstances. If you are contracted to a public sector client, the client...