FCSA members have held a roundtable with David Gauke MP, Financial Secretary to the Treasury, as part of the trade association’s mission to build relations and continue discussions with the Treasury regarding tax policy for umbrella companies and PSCs. Hosted by The CBI, the focus of the meeting centred on the proposals announced at the 2016 Budget to change the tax framework for PSCs in public sector engagement. Members heard from the Minister that he is keen to work with stakeholders to … [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...]
PSC – A Ltd. Shelf Life
No need to set an alarm this morning – this news certainly woke me up……………………..SDC and PSC are words synonymous within the contractor, temp and the wider Recruitment Process Outsourcing (RPO) sector.But, HMRC, via Companies House have today published a game changer and it’s huge!In short, Companies House are viewing, SDC and PSC as one and the same. This will be known as “People with Significant Control” (PSC).The upshot is simple, the exodus to people setting up Ltd Companies, … [Read more...]
Most limited company contractors to end up within IR35 rules
Barring exceptional cases, contractors working for the public sector through their own limited companies are now likely to be subject to a long-standing but controversial tax regime aimed at tackling tax avoidance, say employment tax experts.This is due to proposed changes around the tax regime known as IR35. The proposed new rules, announced last month in Budget 2016, are designed to crack down on the use of limited companies, also known as personal service companies (PSCs). Contractors … [Read more...]
It’s like going back 60 years!
From the 6th of April 2016, in order to pay a contractor travel and subsistence expenses free of Tax and National Insurance, staffing businesses and employment intermediaries have to show that there is no supervision, direction or control (SDC) over a worker “in the manner in which they go about their work”. HM Revenue and Customs (HMRC) will test by examining relevant documents and gathering facts from all parties involved, and if HMRC considers the evidence is unsatisfactory they will recover … [Read more...]
Disguised Remuneration Avoidance
In the 2016 Budget, the Government made an important policy announcement about Disguised Remuneration Avoidance. HMRC will be using the ‘contractor loans’ Talking Points session on 30th March to summarise what this announcement means for individuals that might be involved in Disguised Remuneration Avoidance schemes such as contract workers. ePayMe have been invited to partake in this session and we will be reporting back as to the specific changes. Should you have any questions, please email … [Read more...]
Do you provide workers in the Public Sector? Don’t be left out in the cold!
Since our previous correspondence following the Budget on Wednesday, we have been absolutely flat out talking with contract workers and agencies. It would seem the changes have left a large number of payroll companies scratching their heads as to what they can offer post April 6th. The most significant development to affect our sector in the Budget 2016 will be the changes to the engagement of Personal Service Companies (PSCs) within the public sector, with the agency/hirer being responsible for … [Read more...]
Hopkins and Easton complete positive first test for ePayMe Yamaha
Hopkins and Easton complete positive first test for ePayMe Yamaha The ePayMe Yamaha team made their on track debut at Cartagena in Spain as former MotoGP podium finisher John Hopkins and multiple British Supersport champion Stuart Easton began their pre-season preparations for the 2016 MCE Insurance British Superbike Championship. The team managed by 2011 MCE BSB champion Tommy Hill, utilised the four days at the Spanish track as an initial shakedown as the team members and riders worked … [Read more...]
Could we be looking at the end for PSC’s?
locumtoday writes: Are you directly supervised in your role as a locum? If so, your tax and expenses will change and your self-employment status could be affected, writes Merin Yilmaz, payroll expert in her latest viewpoint blog. With the new financial year and the new budget being released on the 6th April 2016, we predict that by 2017 the HMRC will phase out limited companies for contractors completely. The new legislation is just the beginning of the end for Personal Services Companies … [Read more...]