Here at ePayMe, we have written a number of blogs on compliant umbrella firms, knowing your supply chain and tax avoidance schemes. Now, HMRC has published their own guidance on how to reduce this risk.As we’ve highlighted previously, off-payroll changes are bringing more workers under PAYE. However, some companies are finding unconventional and non-compliant ways to avoid this and pay less tax.These tax avoidance schemes operate on disguised remuneration, reporting some earning as … [Read more...]
Your Provider May Giveth but HMRC May Taketh Away!
Only last week we heard that several recruitment consultants had received tax demands from HMRC relating to unpaid tax on incentive payments received from one or more umbrella companies. If recruitment agency staff accept monies, vouchers and other types of benefit from umbrella providers, they should be declaring this as taxable income.The Government is taking this issue seriously and the actions being taken within the next two years will highlight not just taxation but also the UK’s … [Read more...]
Moving back to a trusted umbrella service from an expensive PSC provider!
Following changes for off payroll working in the Public Sector, many contractors may have found themselves assessed as working inside IR35. Many end clients do not want the hassle of deciding each individual case and so have placed a blanket ban on all contractors. Many of these contractors cease operating through their own limited company, and opt instead for umbrella employment as their agency and end client have suggested. For a contractor working inside IR35 this is usually the better … [Read more...]
The Sun Doesn’t Always Shine
IR35 Autumn Statement Public Sector (let's not forget the Private Sector) April 6th legislative change Apprenticeship LevyNot only have the above words been searched countless times on google, been on a plethora of agendas, they remain areas constantly being discussed.No longer a question of when or if the changes will be implemented or even delayed, the legislative landscape has changed – with changes implemented 6/4/17. If you’re not on the front foot now, there is still time, … [Read more...]
The clock is ticking……………………. ACT NOW
AS16………….IR35……………Are you ready?April 6th, 2017 is fast approaching and with that comes all the changes relating to IR35 legislation. Whilst the Public Sector dominates the spotlight for the change, the private sector doesn’t go unnoticed.Within the Public Sector, we are seeing legislative change, like we’ve never seen before. The most significant factor seeing the end client being responsible for the compliance of their contractors.Don’t underestimate this change. The new rules will … [Read more...]
75 Days to go…
As we have stated previously, 'Do you operate in the Public Sector?’, one thing is clear, the landscape of temporary workers within the Public Sector will be affected by the imminent changes to the IR35 regulations. On Wednesday this week, TfL announced that they would no longer be accepting workers who operate through their own Professional Services Company (PSC) and we expect that this will be a continuing trend. The NHS has already ordered hospitals and healthcare institutes to stop paying … [Read more...]
HMRC, are the gloves off? Is there a storm brewing?
Offshore scheme users face requirement to notify HMRC. Contractors can have their say on their incoming requirement to notify the taxman if they use an offshore structure with evasion “characteristics” which its creator failed to declare.Under proposals published last week, the parties behind such “complex offshore arrangements” structures must inform them to HMRC and provide a list of clients using it.But if the creator (or promoter) fails to declare the arrangements -- which the … [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...]
Autumn Statement looks to cut corporate tax
UK will be G20's least taxing nation, firms told.A cut in corporation tax looks set to be Autumn Statement 2016’s most surprising and contractor-friendly announcement.In a speech to business leaders ahead of the statement tomorrow, Theresa May implied the rate of tax that companies pay on profits will fall to its lowest ever.“My aim is not simply for the UK to have the lowest corporate tax rate in the G20, but also a tax system that is profoundly pro-innovation,” the prime minister … [Read more...]
Autumn Statement: Hammond heaps on more anti-contractor measures
Philip Hammond seemed to wrong-foot the entire contracting industry in his first Autumn Statement (AS) today, November 23rd 2016, by not stating “IR35” once, neither in his speech, nor in his full report.But at AS 4.11, entitled ‘off-payroll working rules,’ the Treasury confirms that it will shift the responsibility and liability for IR35 in the public sector from PSCs to the ‘paying agents’, from April.It means that an adviser to contractors was right to tell ContractorUK on the eve of … [Read more...]