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Limited Trader Category Needs Rethink

As if the IR35 public sector changes are not enough for contractors to contend with, last year’s Autumn Statement announced a new 16.5% VAT flat rate which will apply to businesses with limited costs, such as labour-only businesses, to be applied from 1st April ...

For the Record

Entitlement to a full state pension is contingent of having paid, or been credited with, sufficient NIC. The number of qualifying years needed for a full state pension depends on the date on which state pension age is reached. To ensure that this record is maintai...

Flushed with Success

In another case of a self-employed person being classified as a “limb” worker, the Court of Appeal recently confirmed that Gary Smith, a self-employed plumber, was entitled to sick pay.Gary Smith carried out plumbing work for Pimlico Plumbers Ltd during the period Augus...

All to Thee I Freely Give

Who wants to give HMRC money before it becomes payable? Not many, I would guess but there may be some who would find it a useful way to budget for their forthcoming tax bills.‘Making Tax Digital [MTD]: Voluntary Pay as You Go’, one of the six consultation docum...

Status Tool Ready by End of Month

Late last week, HMRC published its guidance on the impending public sector off-payroll rules albeit somewhat limited and lacking any real meaningful detail. The guidance is contained within four documents.There is further confirmation that the new rules apply to payments ma...

HMRC Claims Given the Chop

It is unusual for HMRC to seek to argue that a taxpayer is self-employed rather than an employee but that is exactly what happened in the First Tier Tax Tribunal case of Ashton v HMRC (2016).Karate World is a martial arts instruction business which had been established by M...

Actual Substitution Was Not Enough

Lorry drivers who occasionally engaged and paid a replacement driver were still found to be employees by the First Tier Tax Tribunal in the case of husband and wife partnership, R S Dhillon and G P Dhillon Partnership v HMRC.

The partnership t/a...

A Step Closer to MTD

HMRC has, this week, published more information on how businesses, the self-employed and landlords will benefit from plans to modernise our tax system.

Over the last 8 months, HMRC received more than 3,000 responses to its six consultation docum...

Don’t Try This at Home

As the Self Assessment countdown begins, HMRC has released its latest list of the most outlandish items which have been claimed as expenses.Glamorous holidays abroad, luxury watches and Friday nights out were amongst some of the most frivolous expenses that some taxpayers t...

A Welcome Suspension

Where a tax return contains an inaccuracy that was due to the taxpayer failing to take reasonable care, then that error is deemed to be ‘careless’ but HMRC have the power to suspend such penalties where the conditions allow them to.Suspension of penalties is seen as a w...

On Your Bike

An Employment Tribunal recently ruled that Maggie Dewhurst, a 29 year old bicycle courier, was not genuinely self-employed but rather a “limb worker” and therefore entitled to basic worker rights.Dewhurst had been delivering for same day courier company CitySprint UK Lt...

Treasury Committee Calls for MTD Delay

The House of Commons Treasury Committee has recently published its report on Making Tax Digital (MTD), which calls for a delay in the implementation of MTD and for mo...

New Year, New Penalties

As a new year dawned, the likes of accountants, bankers, lawyers and other advisors who enable offshore tax evasion entered it with the prospect of tough new sanctions; designed to create a level playing field for the majority of people and businesses who play by the rules....