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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...

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...

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...

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 ...

Fin. Tomorrow marks the day of change for off-payroll working in the public sector

For those contracting in the public sector, today marks the last day that you hold the responsibility for your IR35 status. Tomorrow, any payments made from a public sector contract may be subject to tax and NIC if your end client has deemed you as inside IR35.However, despit...

IR35 – Are agencies and the public sector prepared?

With only a week before the IR35 changes in the public sector are live, there is still widespread concern in the contracting industry. The final legislation has now been published, which most notably features greater accountability on public sector bodies for determining the IR...

What is the Construction Industry Scheme?

For those working in the construction industry, including builders, electricians, and painter/decorators, CIS is a tax scheme designed by HMRC to minimise tax evasion within the industry.

The construction industry scheme (CIS) is a set of rules th...