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...]
Powerful new Government body – New Workers’ Watchdog confirmed
The Government confirmed on the 8th June a powerful new workers’ watchdog will be created to protect the rights of UK workers. The watchdog will be responsible for tackling modern slavery, protecting agency workers and enforcing the minimum wage, which are currently managed by 3 different bodies.Business minister Paul Scully quoted "This new workers’ watchdog will help us crack down on any abuses of workers’ rights and take action against companies that turn a blind eye to abuses … [Read more...]
Furlough numbers continue to decline
Government’s Plan for Jobs pay off as figures indicate 1.3 million fewer employees accessing furlough. An optimistic outlook for the labour market indeed. At an all-time low this year, statistics published by GOV.UK on the 3rd June reveal that the number of workers relying on government support fell to 3.4 million. March and April showed 1.3 million employees moving off furlough, with some of the highest falls in the under 18s and 18 – 24 age group. Furthermore, the furlough … [Read more...]
If you work from home then you may be eligible to claim HMRC Tax Relief in 2021 / 2022
If you work from home on the instruction of your employer, incurred additional expenses as a result thereof, you may be eligible to claim tax relief from HMRC. In 2020/2021 the HMRC received in excess of 3 million claims for tax relief. According to GOV.UK more than 500k people have claimed and are benefitting from ‘working from home tax relief’ this year already. If an employed worker has been instructed to work from home due to the Covid-19 pandemic and has incurred expenses as a … [Read more...]
Employee Experience the focus of Post-Covid Business: How prepared is your business?
Many employers are making sincere changes to their businesses in order to incorporate the increasingly popular Hybrid Working Model and prioritise Employee Mental Wellbeing. The UK Government's initial response to the Covid-19 pandemic was to impose a countrywide lockdown, enforcing workers to work remotely from home where possible. Businesses as a result, had to adjust and comply with new regulations for the safety of its workers.Subsequently, the effects of lockdown has now … [Read more...]