As many of the governments coronavirus support schemes are coming to an end, HMRC are assessing the impact of fraud within them.HMRC’s current estimate for the amount lost to fraud and error in the schemes during 2020 to 2021 is a total of £5.8 billion against a £81.2 billion spend. 8.7% in CJRS, 2.5% in SEISS phases 1-3 and 8.5% in the eat out to help out schemes.From the beginning, it was clear the scheme would be targets for fraud and that customers may make mistakes.The … [Read more...]
Minimum Wage Boost
1st April 2022 will see national living wage rise to £9.50, which represents an increase of 0.59p.The increase will support the wages and living standard of low paid workers at a time when pay growth is robust across the economy.Bryan Sanderson, Low Pay Commission Chair, said:The rates we recommended will put money in the pockets of care-workers, food distributors and many other groups of the lowest-paid members of our society up and down the UK. Many of them have made a vital … [Read more...]
HMRC issue guidance on how to reduce your risk of using tax avoidance umbrella companies
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...]
Self-employed pension savings at a low
HMRC have released figures that reveal self-employed pension savings have hit record lows across 2019/2020. Since 2012 to 2013, non-eligible employee participation has increased to 34%. However, this has declined for the self-employed to 16%.In 2019/20 self-employed people paid around £830m into their personal pensions. Though, this figure is down from the £1.15bn paid in the previous year.It is thought that due to the COVID-19 pandemic, this figure would have reduced even further … [Read more...]
HMRC issues letters alerting contractors to tax avoidance schemes
The new IR35 Legislation has encouraged more contractors to seek work through umbrella companies. However, the rise of disguised remuneration schemes has now prompted HMRC to act.HMRC have started issuing Tax Avoidance Warning letters directly to contractors, strongly suggesting they may be involved in a DR arrangement or scheme. However, the contractors were likely deceived into signing up as a user, believing they were signing up to a true umbrella company.Are the Revenue using this as … [Read more...]
HMRC reveal bizarre excuses for not paying NMW
Following the latest HMRC press release naming and shaming employers for paying staff less than minimum wage, they have now published some of the excuses employers have used for failing to pay staff at minimum wage.HMRC recognises that the vast majority of employers ensure they pay their employees at least the NMW, but, in tax year 2020-21, it has helped over 155,000 workers in the UK to recover more than £16 million in pay they were entitled to. In addition, it has issued over £14 million … [Read more...]
Job vacancies reach the 1 million milestone
The month of July saw more than a million job openings, the first on record since the economy recovers from the pandemic.Figures published by the ONS also showed that the number of employees on payrolls rose by 182,000 last month - though this was still 201,000 below the pre-crisis levels.Arts, leisure and food service firms were among those making a big contribution to the surge in job vacancies.Ruth Gregory, senior UK economist at Capital Economics, said the jobs data should calm … [Read more...]
HMRC update: New proposal to clamp down on promoters of tax avoidance
HMRC have published further updates on the proposal to clamp down on tax avoidance schemes.The measure is targeted at the most persistent and determined promoters and enablers of tax avoidance.The proposed legislative changes are designed to clamp down on the supply of tax avoidance arrangements and include:a new power for HMRC to seek freezing orders that would prevent promoters from dissipating or hiding their assets before paying the penalties that are charged as a result of … [Read more...]
HMRC fails to convince Lords on legal justification for Loan Charge
In a widely anticipated follow-up session on the Loan Charge by the Lords Economic Affairs Committee, HMRC failed to convince the Committees members on the legal justification for it’s highly controversial retrospective tax that has resulted in thousands of freelancers being pushed to the brink of bankruptcy. The members also poured scorn on HMRC’s poor record of cracking down on rogue umbrella companies which are, according to the BBC, still promoting schemes.The Committee directed … [Read more...]
Right to work in the UK changes for EEA Citizens
With less than two weeks until the right to work checks change for EU residence whom are continuing to live and work in the UK, the employer’s right to work guidance has now been updated.From 1 July 2021, EEA citizens and their family members require immigration status in the UK. They can no longer rely on an EEA passport or national identity card, which only confirms their nationality, to prove their right to work. They will be required to provide evidence of lawful immigration status in … [Read more...]