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Providing labour or a service?

The Chartered Institute of Taxation (CIOT) have written to HMRC in respect of the department’s guidance re the Employment Intermediaries Reporting Rules (EIRR) and Agency Worker legislation (s.44, ITEPA 2003), in particular whether or n...

Lights, camera, (IR35) action

Earlier this year we saw former BBC Look North presenter, Christa Ackroyd, lose her IR35 appeal at the First-tier Tax Tribunal, although she is to carry on the fight. At the same time, it was also understood that there were numerous other...

Prepare now for MTD

Despite Making Tax Digital (MTD) for VAT being only six months away, research carried out by the ICAEW (Institute of Chartered Accountants in England and Wales) last month revealed that over 40% of affected businesses are still unaware of...

HMRC Exposed

As the creators of IR35, in theory, HMRC shouldn’t make mistakes when it comes to understanding or policing the rules around tax status and employment status. And yet, earlier this week, it happened again - the taxman was left red-faced...

Employment intermediary escapes late filing penalty

For over three years now, employment intermediaries such as agencies, employment businesses etc, have had to file returns detailing those whom the intermediary believes it has a legitimate reason for engaging workers on a self-employed ba...

Chaos over employment status looms

It was reported in The Guardian that, in July, Britain had the biggest budget surplus since 2000, and more income was apparently received in tax than was spent by the Government on public services. The changes to IR35 in the sector could ...

HMRC caught offside over referees

HMRC has lost another employment status case at the First-tier Tax Tribunal, this time involving football officials. The Revenue had raised tax and NIC assessments on the Professional Game Match Officials Ltd (PGMOL) totalling nearly ...

IR35 – Pressure mounts on Government

The growing threat of working inside IR35 is the number one concern for contractors, and yet calls for the Government to introduce employment rights for individuals who are ‘employed for tax purposes’ continue to go unheard. ...

Spotlight on Umbrella Schemes

HMRC are warning contractors that signing up to umbrella companies that promise to increase take home pay by anything ranging from 80–95%, is just storing up trouble later down the line. In HMRC Spotlight 45, the department explain t...

Contractors Urge HMRC

Contractors do not think further IR35 changes are necessary - nor does the vast majority of UK business for that matter. It’s not difficult to see why. Public sector reform has wrongly forced thousands of contractors inside IR35, and al...

Not all mistakes are costly

To err is human and mistakes are easily made by taxpayers completing their Self-Assessment tax returns. None of us are perfect after all. Where such a mistake leads to an individual paying more tax than was necessary and discovers their e...

Blanket IR35 determinations: when will HMRC learn?

New Qdos Contractor research indicates that 38% of contractors have been subject to blanket determinations placing them inside IR35 in the public sector. These decisions, made by the engager, result in all contractors working in a particula...

TAAR for that

Following recent discussions between the Chartered Institute of Taxation and HMRC, the Revenue have now updated their guidance on the Company Distributions Targeted Anti-Avoidance Rule (TAAR) within the Company Taxation Manual (CTM). T...

You’re wrong, we’re right

The recently published Adjudicator’s annual report for the year ended 31st March 2018 and reveals that elements of HMRC’s culture impacts upon the department’s initial interaction with taxpayers, their complaint handling and the act...

A Response to HMRC’s Off-Payroll Consultation Document

The consultation document on reforming the off-payroll rules within the private sector closed on 10th August and the Chartered Institute of Taxation (CIOT) have recently published its response. As an impartial educational charity, whose m...

A dent in the substitution argument?

The recent Employment Tribunal ruling in the Hermes Parcelnet Ltd (Hermes) case may have provided HMRC with another strand of argument when disproving a right of substitution. A total of 65 couriers brought successful claims against He...