The private sector IR35 reform proposal threatens to expose clients to the new corporate criminal evasion offence if they fail to ensure PSCs pay the "right amount" of tax, a law firm is warning.Assuming the much-disliked IR35 reform plan is adopted, the September 2017 offence could catch engagers if the contractor is found evading tax, as opposed to avoiding it, cautioned Pinsent Masons.So rather than just simply applying a liberal interpretation of IR35 case law, the contractor could … [Read more...]
Just when I thought I was OUT, they pull me back in
With ongoing research by many commentators showing that contractor’s confidence in HMRC’s IR35 CEST (Check Employment Status Test) tool is low, questions are now turning to whether the tool is now even fit for purpose. This is especially prevalent with the governments supposed determination to implement these changes to the private sector.The CEST tool is used by contractors’ and Public Sector Authorities to accurately assess and determine an engagement’s IR35 status. Provided the … [Read more...]
To Prefer or not To Prefer…. That is the question
Whilst many Recruitment Agencies utilise a Preferred Supplier List (PSL) of umbrella companies and contractor accountants, how sure can stakeholders of an agency be that this is being enforced by their workforce?Unfortunately, not everyone plays fair and with the introduction of various pieces of legislation in the past few years, the need for an agency and its directors to protect itself has never been greater. The new Criminal Finance Act especially includes the corporate offence which … [Read more...]
Your Provider May Giveth but HMRC May Taketh Away!
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...]
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...]
No ‘IR35′ in Spring Statement splits contractors’ advisers
The contractor sector must wait a little longer to learn the fate of IR35 in the private sector, as today’s Spring Statement made no mention of it.“Predictably, our sector has been left in the dark over potential IR35 changes,” says Seb Maley, chief executive of IR35 advisory Qdos Contractor.Referring to a consultation on IR35 -- promised at 2017’s Autumn Budget, Mr Maley added: “The government must realise that the sooner they offer clarity over the situation, the better.”Asked … [Read more...]
IR35: what private PSCs could see in April 2019
While some people talk about fairness and parity between freelancers and the employed, I doubt the government is looking at changing the IR35 legislation because they feel a moral obligation to create greater fairness, writes Mark Lee, founder of ContractElite.The government needs to collect more tax; that’s the real incentive. As chancellor Philip Hammond has already flagged up (and quite nicely, given that his Spring Statement 2018 is just around the corner), the greater propensity for … [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...]
Are you and your business ready for the Criminal Finances Act 2017?
With so much red tape and other recent changes to IR35 passing your desk, you can be forgiven for taking little notice of this legislation passed by Parliament last April. An introduction date of 30th September means that action may need to be taken to ensure you remain compliant.The Government believes that relevant bodies should be criminally liable where they fail to prevent those who act for, or on their behalf from criminally facilitating tax evasion.Here is a link to the draft … [Read more...]