It might date back to an announcement almost three years ago, but a change to dividend taxation will hit PSC contractors – in earnest – from next month, writes James Trowell, head of tax at Dolan Accountancy. In fact, from 6th April 2018, there are significant changes to the tax-free dividends allowance. These changes will reduce the 2017/18 tax-free rate from £5,000 to £2,000 -- per tax year, in 2018/19.The ChangesTax Free Dividends Allowance - £2,000 Personal Allowance - £11,850 (up … [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...]
No ‘IR35′ in Spring Statement splits contractors’ advisers
The contractor sector must wait a little longer to learn the fate of IR35 in the private sector, as today’s Spring Statement made no mention of it.“Predictably, our sector has been left in the dark over potential IR35 changes,” says Seb Maley, chief executive of IR35 advisory Qdos Contractor.Referring to a consultation on IR35 -- promised at 2017’s Autumn Budget, Mr Maley added: “The government must realise that the sooner they offer clarity over the situation, the better.”Asked … [Read more...]
IR35: what private PSCs could see in April 2019
While some people talk about fairness and parity between freelancers and the employed, I doubt the government is looking at changing the IR35 legislation because they feel a moral obligation to create greater fairness, writes Mark Lee, founder of ContractElite.The government needs to collect more tax; that’s the real incentive. As chancellor Philip Hammond has already flagged up (and quite nicely, given that his Spring Statement 2018 is just around the corner), the greater propensity for … [Read more...]
Best Locations For Freelancers Revealed
New research from MoneySuperMarket reveals the best locations across the UK for freelancers and Manchester tops the list, thanks to a thriving freelance industry and a high number of start-ups. Contributor Kevin Pratt, consumer affairs expert at MoneySuperMarket.Freelancing is popular with those adopting the lifestyle, with 60 percent believing it’s a good career move. With the option of flexible hours, working from home and being your own boss, it’s no surprise that many people are turning … [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...]
IR35 reform in the private sector: waiting for the other shoe to drop
Long before controversial public sector IR35 reform was introduced in April, speculation was mounting that the private sector would face similar changes. And in fact, public sector reform was simply seen as a test-run for the private sector by many, writes Seb Maley, Qdos Contractor's CEO.While private sector IR35 reform has not yet been confirmed by the government, the rumour that this might well happen in time does have substance. Along with increasing media attention, private sector IR35 … [Read more...]
Congratulations Bethany
Bethany from London was our lucky contract worker who won the iPad from our June competition entries.Presented by Paul Johnston, Business Development Director of ePayMe Please visit our competition page to see how you could win a fantastic prize. During the month of July, you could win a 50" TV. … [Read more...]
What VAT solution is best for your Limited Company?
If you’re considering starting your own Limited Company, there are quite a few things to think about. We can help with all of this. We can provide you with software to look after everything, which is in partnership with FreeAgent, incorporate your company and introduce you to some of our partners to help with items such as insurance protection and online business banking.We find that VAT is often left to just utilising the standard VAT scheme of quarterly submissions calculating VAT … [Read more...]