Last Monday saw the release of the HMRC’s draft finance bill, detailing the reforms as to how the IR35 legislation must be operated in the public sector from April 2017.There have been strong reactions from industry bodies to the Government’s new ‘Draft provisions for Finance Bill 2017’, nearly 400 pages of new tax legislation setting out the draft provisions for technical consultation, including changes to National Insurance contributions, clampdown on salary sacrifice contracts for new car … [Read more...]
HMRC, are the gloves off? Is there a storm brewing?
Offshore scheme users face requirement to notify HMRC. Contractors can have their say on their incoming requirement to notify the taxman if they use an offshore structure with evasion “characteristics” which its creator failed to declare.Under proposals published last week, the parties behind such “complex offshore arrangements” structures must inform them to HMRC and provide a list of clients using it.But if the creator (or promoter) fails to declare the arrangements -- which the … [Read more...]
Don’t be left in the dark about your Self-Employed Status
For many years being Self Employed meant working for yourself with no input from anyone else. Gone are the days of “cash-in-hand” as HMRC are clamping down on the whereabouts of Tax and NI for these services. If you are actively sourcing your own work for yourself and have no input from another source then you can be classed as self-employed, if however, you rely on an agency to source you this work then you are classed as employed and so will need to be PAYE or Limited status.PAYE can be … [Read more...]
HMRC off-payroll changes put recruiters in firing line
Recruiters fear “ill-conceived” changes to the rules regarding off-payroll workers will have a negative effect on the industry and could place some agencies on the wrong side of the law.Chancellor Philip Hammond announced in his Autumn Statement that the responsibility for operating IR35 off-payroll working rules and paying the correct tax will shift to the body paying the worker's company, potentially the recruitment agency.The new rules mean that when a worker provides their services … [Read more...]
FCSA says HMRC’s online tool is ‘not fit for purpose’
A new online tax tool designed to offer reassurance over the rules regarding IR35 status is likely to cause more problems than it will solve, according to the Freelancer & Contractor Services Association (FCSA).HM Revenue & Customs has designed the tool to be used by contractors, agencies or hirers to provide a definitive document to prove that a contractor is working according to IR35 rules, assuming that the questions are answered honestly.But the trade association for umbrella … [Read more...]
Autumn Statement: Hammond heaps on more anti-contractor measures
Philip Hammond seemed to wrong-foot the entire contracting industry in his first Autumn Statement (AS) today, November 23rd 2016, by not stating “IR35” once, neither in his speech, nor in his full report.But at AS 4.11, entitled ‘off-payroll working rules,’ the Treasury confirms that it will shift the responsibility and liability for IR35 in the public sector from PSCs to the ‘paying agents’, from April.It means that an adviser to contractors was right to tell ContractorUK on the eve of … [Read more...]
IR35 research subjects make charges against HMRC
Participators of behind-closed-doors research into IR35 and employment status that HMRC commissioned have spoken out from the shadows, due to dissatisfaction with the department.Called to the Revenue’s offices to help it develop the IR35 digital tool, which is meant to be launched before April, an accountancy firm accused the tax staff it met of a worrying level of naivety.“They still look at assessing IR35 status by thinking everybody operates in exactly the same way,” the firm said, … [Read more...]
The door is firmly shut
ContractorUK has recently written that “Temporary staff agencies have avoided hundreds of millions (if not billions) in tax”…………..HOW? By a scheme that far too many agencies are allowing contractors and temporary workers to register with – THIS HAS TO STOP.In simplistic terms, the scheme pairs up all the workers, and routes them through a myriad of smaller Limited Companies. Clearly, these are NOT TRUE Limited companies. These mini employment companies are ultimately exploiting both VAT … [Read more...]
“Self Employed” – Are you sure?
Today’s blog focuses on the events/PR sector. Whilst no different to any other sector, adherence to the numerous, and often complex HMRC guidelines/requirements require focus and close attention.Whilst “cheap” is no doubt good for the bottom line, does this provide longevity in either the solution of the long term for a business?At ePayMe, we work with many within this sector. Similarly, we speak with a plethora of prospective clients and come up against a couple of common themes, but … [Read more...]
HMRC ‘unwilling to give any steer’ on IR35 changes
The taxman is “unwilling to give any steer” on his approach to April’s IR35 changes to the very parties who will be liable and responsible for those changes, an agency body alleges.This current reticence by HMRC to provide the parties with the “real detail” on how the new rules will work makes it probable that it won’t be released until next year, says APSCo.The agency body reached this conclusion after it held a meeting with the Revenue’s policy officers Neil Chattell and Julie De … [Read more...]