The taxman will oppose any deviation from the central tenet of IR35 reform – that engagers decide the status of their limited company contractors.Issuing this assessment, HMRC dispute firm WTT Consulting could have been trying to clue-up or warn those hoping chancellor Jeremy Hunt uses his Autmn Statement 2022 on November 17th to announce an off-payroll review.Dolan Accountancy But the firm’s Graham Webber, who specified the resistance by HMRC to removing clients as the IR35 … [Read more...]
Retained EU Law (Revocation and Reform) Bill
There are so many headlines in the mix today that we don't know which ones to shout about first.What with IR35 determinations being handed back to the contractor, Living Wage changes, revoking of the National Insurance increase...... the list goes on.We try to report on important information in our sector and topics that affect our contractors and agencies.This little snippet nearly got lost in the mini budget news. There was an employment law development yesterday and it is very … [Read more...]
HMRC’s Latest List of Tax Avoidance Schemes
Here is HMRC's latest list of tax avoidance schemes. Its not long since HMRC's last update so they are clearly very active in highlighting these schemes and outing the perpetrators. That's good to see, particularly if it helps stop non-compliant umbrellas and stops contractors becoming embroiled in a scheme that results in a huge future tax bill that they're personally liable for.We would like all umbrella companies to be compliant in their approach to avoidance of Tax and not look to … [Read more...]
Contractors at risk of being taken in by bogus badges from ‘sham’ accreditation outfits
Contractors must start double-checking the badges that umbrella companies display on their website, experts are appealing to readers of ContractorUK.The advice to check that the provider’s badge is a stamp of approval from a genuine, verifiable accreditation body featured in a new umbrella company checklist for contractors.Dolan Accountancy But an avoidance scheme blacklisted by HMRC – Peak PAYE Ltd -- has since been observed using a badge emblazoned with ‘The Institute of Freelancing & … [Read more...]
ONS Reports Increase in Temporary Workers
The number of temporary employees in the UK increased by 9.16% on a seasonally adjusted basis to a total of approximately 1.71 million for the three-month period from October 2021 through December 2021 when compared to the same period a year ago, according to the Office for National Statistics.When compared to the previous three-month period ended November 2021, the number of temporary employees saw an uptick of 1.88%Temporary workers are self-identified when surveyed by the ONS, and … [Read more...]
Hot Topic – Preferred Supplier Lists
With recent headlines, there is a need for Preferred Supplier Lists (PSL's) but at what cost?A contractor could demand that they continue to be paid through an umbrella that is not on an agencies PSL and that umbrella might not be compliant. The contractor may want to continue to use them as their take home pay is 85%+. In this instance, why should an agency want to use them?There is also additional administration in setting them up, if they have not worked with them previously. Due … [Read more...]
HMRC names avoidance scheme promoters for first time
All legitimate umbrella companies have been calling for the regulation of the sector for a long time.We are pleased to announce that Tax avoidance schemes have been named for the first time by HM Revenue and Customs (HMRC) as users are warned they could face large tax bills.HMRC has today advised anyone involved in Absolute Outsourcing’s or Purple Pay Limited’s Equity Participation Scheme to withdraw from them as soon as possible to prevent building up a large tax bill.This is the … [Read more...]
Changes to National Insurance
The big story in this Spring Statement was the announcement that the Government will increase both the Primary Threshold and Lower Profits Limit of National Insurance to bring them in line with the income tax personal allowance of £12,570.The Primary Threshold and Lower Profits Limit are the points at which both employees and the self-employed start paying National Insurance.Speculation had mounted in recent weeks that the Chancellor would cancel the proposed increase in National … [Read more...]
Trade body for Recruitment Professionals responds to the Spring Statement
Responding to the Chancellor, Rishi Sunak’s Spring Statement, Tania Bowers, Global Public Policy Director at the Association of Professional Staffing Companies (APSCo), comments:“The news that the National Insurance Contribution (NICs) threshold has been raised to ensure both the employed and self-employed can earn £12,570 without paying NICs from July is not what we expected or have called for. APSCo wrote to the Chancellor earlier this year calling for a delay to the NICs contribution … [Read more...]
Tax Year Allowances 2022-2023
Please see below updates for this coming April. There is still some debate around delaying the NI increase, I think we are all keeping our fingers crossed that this is delayed or cancelled.Tax AllowancesTax codes will not be changing, if you are currently on a 1257L tax code, this will remain the same for 2022. This means you can earn up to £242 per week or £1,048 per month before paying tax.National Living WageThe national living wage, minimum wage and for those aged 23 and … [Read more...]