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...]
‘Brave’ contractor MDCM Ltd wins IR35 appeal
A brave limited company contractor has won his IR35 appeal, overcoming three status factors that went against him and giving HMRC a red-face in the process.Mark Daniels, who fought HMRC alone in an era of it using barristers, even got helped to his win by HMRC, despite Financial Risk, Substitution and MOO going in its favour.But on Control, HMRC was forced to withdraw its submission against Daniels, director of MDCM Ltd, during the hearing and once tax officials had heard oral evidence … [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 Rules to be Applied to Private Sector from April 2019?
Following examination of the IR35 Forum's minutes from their last meeting, it has been claimed that the rules introduced for Public Sector workers will be extended to Private Sector workers as early as April 2019.This warning comes in spite of the issues and concerns that have arisen following the imposition of the Public Sector rules last year. The Forum's stakeholders and members have been very vocal in expressing their views and highlighting that any assessment of the effectiveness of … [Read more...]
Upper Tribunal upholds FTT Decision in Costelloe MSC Case
HM Revenue and Customs (HMRC) won the initial case in the First-tier Tribunal (FTT) involving attempts to avoid PAYE Income Tax and Class 1 National Insurance Contributions (NICs) on employment income.HMRC successfully argued that the managed service companies (MSC) legislation and equivalent National Insurance contributions legislation applied to arrangements established and run by a third party - Costelloe Business Services Limited.On appeal, the Upper Tribunal has upheld the original … [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...]
How your imminent self-assessment is affected by your set-up
If you're a contractor and you haven't yet submitted your self-assessment to HMRC, then you need to get going - the deadline is midnight on January 30th. With all the recent changes to the rules, there are sure to be many people scratching their heads as they struggle with their returns. You can find some useful information videos on YouTube, and the following article provides some extremely valuable advice.With the starting pistol of 2018 now well and truly fired, countless contractors … [Read more...]
What needs to happen to IR35 in 2018
The imposition of the updated IR35 off-payroll rules on the public sector in April last year has had a significant, and many would argue disastrous, effect on contractors and the organisations using their services. For months, speculation has been rife that the Government's next step will be to extend the rules into the private sector. Many feared that this could happen in 2018 - but now it appears that this year will instead be spent in 'careful consultation'.Whilst we await further … [Read more...]
Hammond schedules Spring Statement 2018
The government’s Spring 2018 “Statement” - not Budget - has been timetabled by the chancellor for Tuesday March 13th 2018.The distinction that the statement is not a Budget, nor a fiscal event, was made by Philip Hammond to MPs on the Treasury Select Committee.It follows his pledge at Autumn Statement 2016 that, to make life easier for businesses and other taxpayers, there will be no further Budgets in the Spring, only the Autumn.But the March statement is still an opportunity for Mr … [Read more...]