Last Monday saw the release of the HMRC’s draft finance bill, detailing the reforms as to how the IR35 legislation must be operated in the public sector from April 2017.There have been strong reactions from industry bodies to the Government’s new ‘Draft provisions for Finance Bill 2017’, nearly 400 pages of new tax legislation setting out the draft provisions for technical consultation, including changes to National Insurance contributions, clampdown on salary sacrifice contracts for new car … [Read more...]
Don’t be left in the dark about your Self-Employed Status
For many years being Self Employed meant working for yourself with no input from anyone else. Gone are the days of “cash-in-hand” as HMRC are clamping down on the whereabouts of Tax and NI for these services. If you are actively sourcing your own work for yourself and have no input from another source then you can be classed as self-employed, if however, you rely on an agency to source you this work then you are classed as employed and so will need to be PAYE or Limited status.PAYE can be … [Read more...]
HMRC launches new employment status unit
Recruiters have been urged to review their practices to ensure individuals are not being misclassified as self-employed.The warning comes from employment lawyers after it emerged HM Revenues & Customs is launching a specialist unit to investigate firms suspected of withholding employment protection from workers, by using agency staff or calling them self-employed.The move was confirmed last week in a letter from financial secretary to the Treasury, Jane Ellison, to Labour MP Frank … [Read more...]
Why the future’s not bright for IR35 advice
Caring whether their adviser soon gets stuck between a rock and a hard place isn’t the job of a contractor.But new legislative proposals may mean the upshot of this predicament for advisers is a reluctance for them to assist temporary workers with tax and IR35 advice.This is the realistic prospect of a tabled piece of tax legislation that threatens to drive divisions between adviser (the professional who gives you guidance on IR35, for example) and client (you, the contractor).In the … [Read more...]
Nearly 40 Percent of U.S. Workers Prefer Gig Work
About 4 in 10 U.S. workers would prefer to work outside of the traditional, full-time, salaried 40-hour workweek, according to new research. Thirty-seven percent of 7,000 respondents selected alternatives to full-time employment as their preference, with gig work emerging as a leading choice for many.The finding is from research on the size and scope of the contingent workforce in the United States, conducted by Staffing Industry Analysts (SIA), a staffing advisory firm based in Mountain … [Read more...]
Over £21m in penalties issued for employing illegal workers
In the second half of 2015, over £21 million in penalties was issued to employers in the UK for hiring illegal workers. UK Visas and Immigration Enforcement publish a quarterly report showing the total number of fines (civil penalties) for illegal working given to employers in each region of the UK. In this report the total number of illegal workers identified in the second half of 2015 was 1,820, the highest number of which were in the London & South East England region. A massive 1,217 … [Read more...]
More than three million taxpayers could have paid the wrong amount of tax last year
After staff cuts at HM Revenue and Customs (HMRC) last year, the number of tax investigations doubled and taxpayers were left waiting nearly an hour to speak to the taxman. An investigation from the National Audit Office (NAO) found that the number of “outstanding discrepancies” in Pay As You Earn (PAYE) tax records soared between March 2014 and March 2015 from 2.4m to 4.6m. Of those, 3.2m “were high priority cases, carrying a risk that employees will have paid the wrong amount of tax”.The … [Read more...]
HMRC in ‘cracking win’ over MSC contractors
The first ever court appeal against the MSC legislation has found in favour of the taxman, who is calling the ruling “cracking” for protecting up to £9million.Such is the total sum expected to be safeguarded in respect of all limited companies set up under the scheme before the court, which was run by Costelloe Business Services (CBS).Accused of being a MSC that encouraged the avoidance of £378,000 in tax (including NICs) by encouraging contractors into limited companies, CBS gave just … [Read more...]
Tribunal favours HMRC in five avoidance cases
The Finance and Tax Tribunal has ruled in favour of HM Revenue & Customs in five cases in which an avoidance product operated by managed service company (MSC) Costelloe Business Services was used to avoid PAYE income tax and Class 1 National Insurance contributions (NICs) on employment income.Costelloe Business Services (CBS) case rested on whether the scheme sidestepped MSC legislation with CBS claiming it was not involved with each service company. Recruiter understands the scheme … [Read more...]
The Force is Strong with this one…
This is the Payroll company you are looking for! In celebration of Star Wars Day, ePayMe have a limited time special offer: Any candidate that registers or re-registers with us between May the 4th andMay the 6th will receive 4 weeks free payroll processing.To take advantage of this amazing offer, simply ask your candidates to call us between the above dates on 0800 622 6119, or register online at www.epayme.co.uk/contractor-registration (remembering to quote the promotional phrase, 'The … [Read more...]