Recruiters have been urged to review their practices to ensure individuals are not being misclassified as self-employed.The warning comes from employment lawyers after it emerged HM Revenues & Customs is launching a specialist unit to investigate firms suspected of withholding employment protection from workers, by using agency staff or calling them self-employed.The move was confirmed last week in a letter from financial secretary to the Treasury, Jane Ellison, to Labour MP Frank … [Read more...]
Important information for all our Contractors
This is for information only, you do not need to do anything at the moment.It's been 3 years since our Pension Auto Enrolment and now we must go through our first re-enrolment. Automatic re-enrolment is a statutory process that all companies have to go through.This means that from 31st October 2016, any workers that have opted out 12 or more months ago and are still active, will be automatically re-enroled.All you need to do if you wish to opt out again, is to follow the original … [Read more...]
Why the future’s not bright for IR35 advice
Caring whether their adviser soon gets stuck between a rock and a hard place isn’t the job of a contractor.But new legislative proposals may mean the upshot of this predicament for advisers is a reluctance for them to assist temporary workers with tax and IR35 advice.This is the realistic prospect of a tabled piece of tax legislation that threatens to drive divisions between adviser (the professional who gives you guidance on IR35, for example) and client (you, the contractor).In the … [Read more...]
New Tax Avoidance Scheme Uncovered
WARNINGNew tax avoidance scheme uncovered with PSC’sHMRC has warned taxpayers against using a new ER-based scheme to reduce tax payable on earnings to 10%.How it worksThe scheme is described in the latest tax avoidance “spotlight” by HMRC: Capital Gains Tax: Entrepreneurs’ Relief tax avoidance scheme. It has three stages:A taxpayer who owns a personal service company (PSC) in the UK sells that company to an organisation based in Cyprus. This sale is correctly taxed as a … [Read more...]
Good News, HMRC announce the Personal Tax account service
Tax accounts for Business owners have been in operation for a number of years to enable the business to keep track of tax paid, payments due, etc. however there has been no provision for a simple easy to use system for the employees. Employees have had to endure long waits to connect to HMRC and lengthy discussions and form filling to ascertain whether there have been under or over payments in tax or simply advise of changes in personal circumstances.Good News, HMRC have announced that … [Read more...]
Treasury Minister meets FCSA in discussion on the Government’s PSC reforms
FCSA members have held a roundtable with David Gauke MP, Financial Secretary to the Treasury, as part of the trade association’s mission to build relations and continue discussions with the Treasury regarding tax policy for umbrella companies and PSCs. Hosted by The CBI, the focus of the meeting centred on the proposals announced at the 2016 Budget to change the tax framework for PSCs in public sector engagement. Members heard from the Minister that he is keen to work with stakeholders to … [Read more...]
HMRC in ‘cracking win’ over MSC contractors
The first ever court appeal against the MSC legislation has found in favour of the taxman, who is calling the ruling “cracking” for protecting up to £9million.Such is the total sum expected to be safeguarded in respect of all limited companies set up under the scheme before the court, which was run by Costelloe Business Services (CBS).Accused of being a MSC that encouraged the avoidance of £378,000 in tax (including NICs) by encouraging contractors into limited companies, CBS gave just … [Read more...]
Schools in England struggle to recruit heads
Many schools in England are struggling to recruit head teachers, amid increasingly negative attitudes to the job, a report warns. It is crucial to counter negative views of headship, the Future Leaders Trust report says. More than a quarter (28%) of existing heads are planning to leave within five years, while younger heads are unwilling to take on the role, it adds. The government said it was taking steps to address the problem. The report draws on research conducted jointly with the Times … [Read more...]
HMRC chief executive Lin Homer quits
The head of HM Revenue and Customs has quit with a £2.2million pension pot and a promise not to take a job in the private sector which will embarrass ministers. Dame Lin Homer, who has run HMRC since 2012, will leave in April after MPs criticised a series of failings and "abysmal" levels of customer service for members of the public. Dame Lin will not receive a pay off when she leaves HMRC when she leaves the Civil Service after a 36-year career in local and central Government. According to the … [Read more...]