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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...

Why Properly Formatting an Invoice is Important

As an independent contract, you’ll need to file an invoice for the work completed at the end of the month. Creating an invoice may seem like a time-consuming and dull task yet getting it right could be the difference between receiving pay...

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...

Am I in breach of contract?

Q. My company provide design engineering services to a large automotive supplier company. The new manager, previously a person providing the same service to the same company is insisting on me working 0830-1700 Mon-Thu and 0830-1300 Fri. Pl...

Do I charge VAT?

Q. I'm working for a UK company via an EU (Irish) agency, my accountant says I do need to charge VAT as a UK company providing a service to a UK company regardless of who my contract is with but the agency is insistent that I don't as they ...

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...

IR35 – Length of Engagement

Q. I've been contracting with the same client in the private sector for 3 years and they would like to extend for another year. I've had my contract reviewed and in itself it's outside of IR35. However, I was wondering if I'd be better off ...

Breach of Contract

Q. I am currently working on a short term contract for an small limited company who in turn is a contractor for a larger Spanish-owned company. I have a contract in place for 3 months with the small Ltd and I have received payment from th...

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...

Platforms, the Platform economy and Tax Simplification

The landscape of the UK workforce is changing, and with new technology, new ways of working have emerged. Despite HMRC’s focus on tackling ‘non-compliance’ with regard to off-payroll workers, the number of self-employed people wi...

2019 Loan Charge – How to avoid it

Contractors who have been using schemes or arrangements, often known as contractor loan schemes, to minimise the tax they pay need to take action to avoid the new ‘loan charge’. These schemes make payments in the form of a loan or ...

Disguised remuneration and time to pay

In what appears to be a response to recent concerns that contractors may be forced into bankruptcy because of the disguised remuneration (DR) loan charge, HMRC have recently updated their guidance Disguised remuneration: settling your tax...

HMRC’s shocking IR35 tribunal track record

Recently, it emerged that HMRC ‘gave up’ on a three year IR35 enquiry which, in the process, saw them drop the £59,000 tax payment they claimed contractor, Garry Philpot owed as a result of working outside IR35 in the 2013/14 and 201...

Permie or contractor?

Q. I am looking at some clarification regarding the 40% rule - if a contractor spends over 40% of their working time within 24 months at a particular workplace, that workplace will be considered permanent. What's working time and non-wor...