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...]
‘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...]
PSCs, are you ready for £3,000 less in dividend allowance?
It might date back to an announcement almost three years ago, but a change to dividend taxation will hit PSC contractors – in earnest – from next month, writes James Trowell, head of tax at Dolan Accountancy. In fact, from 6th April 2018, there are significant changes to the tax-free dividends allowance. These changes will reduce the 2017/18 tax-free rate from £5,000 to £2,000 -- per tax year, in 2018/19.The ChangesTax Free Dividends Allowance - £2,000 Personal Allowance - £11,850 (up … [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...]
Best Locations For Freelancers Revealed
New research from MoneySuperMarket reveals the best locations across the UK for freelancers and Manchester tops the list, thanks to a thriving freelance industry and a high number of start-ups. Contributor Kevin Pratt, consumer affairs expert at MoneySuperMarket.Freelancing is popular with those adopting the lifestyle, with 60 percent believing it’s a good career move. With the option of flexible hours, working from home and being your own boss, it’s no surprise that many people are turning … [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...]
Carry on company! Techies behind naughtiest ‘Ltd’ names
Over the years, our we've seen some pretty weird and wonderful company names - but we don't often come across any that are just plain rude! However, Companies House does - and some of the cheekiest names submitted to them have just been published. Be warned - if you're easily offended, then the article below is not for you!Folk in the consulting and IT community are behind some of the naughtiest names for companies that have been REJECTED.Fancy a call-out from Sod I.T. Systems Ltd? Dare … [Read more...]