Search Magnifying Glass

What letters?

A CASE OF DISPUTED late filing penalties saw the First Tier Tribunal (FTT) uphold an appeal by an employee who claimed that HMRC should have known his address as they had previously been in correspondence with him. In Oliver ...

Construction Industry Compliance

If you are not fully compliant HMRC can reclassify your subcontractors as employees and go back to earlier years and calculate the PAYE tax and National Insurance you should have deducted and charge interest and penalties – even if you ...

Tradespeople Take Legal Action

Court cases and high solicitor fees make legal expenses insurance a precaution worth taking for tradespeople. No self-employed tradesperson sets out in business thinking they will end up in court to defend their interests. But it happe...

Brexit Consequences for Tradesmen

Assessing the potential impact of Brexit for self-employed tradesmen and tradeswomen. The construction industry is in the front line of sectors directly affected by the mounting uncertainty over Brexit. And as an industry with...

Best Cities for Tradespeople

According to new research by bathroom hardware provider Sanctuary Bathrooms. The new ranking analysed the average wages of plumbers, electricians, joiners, and painter decorators, alongside cost of living data, university Building course ra...

Tradesmen targeted by criminals in tool theft ‘epidemic’

In the UK, every 23 minutes a van is broken into and tools are stolen from it, costing tradespeople £100m a year in total. Let that sink in for a moment. Every tradesman and tradeswoman hopes and probably thinks it won’t ever happen...

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...

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...

Pimlico Plumbers appeal goes down the pan

After failing to persuade the Tribunal and the Court of Appeal, Charlie Mullins, founder of Pimlico Plumbers Ltd, also failed in his company’s appeal to convince the Supreme Court that Gary Smith, an ex-Pimlico self-employed operative, ...

Does the Pimlico Plumbers battle undermine IR35?

Q. Does the plumber's recent workers' rights battle against Pimlico Plumbers undermine IR35 for contractors? The Supreme Court ruled that despite being self-employed, he was able to insist on workers rights. Could this open the floodgates f...

Government not concerned about Tax Avoidance when it comes to outsourcing

A recent debate in House of Commons shows that there are far bigger problems in terms of tax avoidance than personal service companies.  It has always been a bone of contention with IR35 that the legislation targets the smallest businesses...

Serial wind-ups will pay dividends

In April 2016, legislation was introduced to counter the practice of opening and closing companies at regular intervals and to prevent shareholders of close companies from escaping an Income Tax charge on the final distribution of company...

How do I complete a risk assessment?

An electrical contractor was ordered to carry out unpaid work and pay costs of £1,152, after his trainee fell three and half metres through a plasterboard ceiling. The trainee suffered head injuries and was in hospital for 23 days. He was ...

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 in...

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 reache...

The resilient labour market means good news for contractors

News that Britain’s unemployment rate has fallen to 4.8%, its lowest level since September 2005, suggests that the economy is not suffering from any post-Brexit blues. The news delighted employment minister Damian Hinds who hailed “the ...