With ongoing research by many commentators showing that contractor’s confidence in HMRC’s IR35 CEST (Check Employment Status Test) tool is low, questions are now turning to whether the tool is now even fit for purpose. This is especially prevalent with the governments supposed determination to implement these changes to the private sector.The CEST tool is used by contractors’ and Public Sector Authorities to accurately assess and determine an engagement’s IR35 status. Provided the … [Read more...]
To Prefer or not To Prefer…. That is the question
Whilst many Recruitment Agencies utilise a Preferred Supplier List (PSL) of umbrella companies and contractor accountants, how sure can stakeholders of an agency be that this is being enforced by their workforce?Unfortunately, not everyone plays fair and with the introduction of various pieces of legislation in the past few years, the need for an agency and its directors to protect itself has never been greater. The new Criminal Finance Act especially includes the corporate offence which … [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...]
IR35 Forum suggests it’s time to prepare for private sector reform
Signs still point towards an announcement in this year's Autumn Budget, with the new rules perhaps coming into force in April 2019The much-debated future of IR35 in the private sector reached new levels of uncertainty recently, with the minutes from the government's IR35 Forum yet again hinting that reform is on the cards.The IR35 Forum is a group of external stakeholders, including taxpayer representatives and professional advisers, who meet quarterly with HMRC. It was established … [Read more...]
IR35 reform coming sooner not later, says HMRC
Private sector IR35 reform will happen way before long-term changes to employment status on the back of Matthew Taylor’s already-published review get made, the taxman suggests.In new IR35 Forum minutes, HMRC says the Taylor response consultation – due this year -- will consider the long term case for reform, but it adds “there is a more immediate need”.Namely; “to consider how best to tackle private sector non-compliance with the off-payroll working rules,” which -- the Revenue … [Read more...]
Nurses & agencies using umbrella loan schemes risk tax bills and prosecution
ePayMe have been advising agencies and contractors about the pitfalls of sourcing schemes that offer a higher net take home pay that normal. Please don't fall into the trap of thinking that it's fine, you won't get caught or it's not your problem. It's not just the healthcare sector that are in the spotlight - any sector, contractor or agency need to be aware.ePayMe Founder and Chairman, Andrew Johnston said 'Over the past 3 years, I have seen a myriad of 'solutions' offered and quite … [Read more...]
Outsourcing for efficiency
The following article looks at the ways that using using an outsourced payroll company such as ePayMe can improve a recruitment agency's efficiency. The article appeared as an advertorial in the January 2018 edition of 'Global Recruiter' magazine. Outsourcing for efficiency Using a dedicated payroll provider pays – in more ways than one Andrew Johnston, Chairman of ePayMeAs an outsourced payroll provider operating in the rapidly evolving temporary employment sector, we need to understand … [Read more...]
Healthier signs for umbrella companies in the NHS
A report in Recruiter yesterday on the future use of umbrella companies in health service staffing indicates that NHS Improvement (NHSI) is taking into consideration what we and the FCSA have been saying all along: firstly, umbrella companies provide an essential service for many NHS workers, and secondly, there’s a key difference between the numerous non-compliant umbrellas that have piled into the sector and reputable, fully-compliant companies such as ePayMe."Like agencies, umbrellas have … [Read more...]
Lorry drivers stung over accounting firm ‘tax dodge’
This article is damning to all those agencies and workers using non-compliant providers. Whether it be an umbrella company promising 90% take home pay or and MSC offering the same, it's too good to be true and you are running a huge risk.Compliant providers will apportion the correct PAYE deductions, won't provide ridiculous referral fees to consultants and will act in accordance with HMRC. With Debt Transfer and the new Finance Act, dealing with a compliant payroll provider is … [Read more...]
Newly self-employed? Don’t miss the October 5 deadline!
If you became self-employed in the 2016-7 tax year (ie between 6 April 2016 and 5 April 2017), and you haven’t yet registered as such with HMRC, then you need to do so by this coming Thursday - October 5th or face the risk of penalties. By law you are required to register so HMRC know they have to issue you with notice to complete a self-assessment tax return and send you tax statements when required.You may also need to register separately for VAT if your VAT taxable turnover is more than … [Read more...]