In 2018, the government committed to regulating umbrella companies following the Good Work Plan. In 2021 HM Treasury, HMRC and the Department for Business & Trade called for evidence on the policy options to regulate and tackle non-compliance in both tax and employment rights by umbrella companies.Umbrella companies play a big role in the temporary/contract supply chain providing their workers with employment rights and deducting the appropriate tax and national insurance contributions. … [Read more...]
HMRC Are Asking New IR35 Questions
The Taxman is asking new IR35 questions of clients whose contractors disputed their status and is quietly making changes to how he assesses end-client processes for handling contractor disputes over IR35 status, Treasury minutes reveal.The changes involve HMRC asking the client “specific questions” about their dispute-process and obtaining feedback on the volume of disputes; their outcomes, and if SDSs were altered.'Demands and questions from HMRC' “A list of all contractors – along … [Read more...]
Contractors at risk of being taken in by bogus badges from ‘sham’ accreditation outfits
Contractors must start double-checking the badges that umbrella companies display on their website, experts are appealing to readers of ContractorUK.The advice to check that the provider’s badge is a stamp of approval from a genuine, verifiable accreditation body featured in a new umbrella company checklist for contractors.Dolan Accountancy But an avoidance scheme blacklisted by HMRC – Peak PAYE Ltd -- has since been observed using a badge emblazoned with ‘The Institute of Freelancing & … [Read more...]
HMRC issue guidance on how to reduce your risk of using tax avoidance umbrella companies
Here at ePayMe, we have written a number of blogs on compliant umbrella firms, knowing your supply chain and tax avoidance schemes. Now, HMRC has published their own guidance on how to reduce this risk.As we’ve highlighted previously, off-payroll changes are bringing more workers under PAYE. However, some companies are finding unconventional and non-compliant ways to avoid this and pay less tax.These tax avoidance schemes operate on disguised remuneration, reporting some earning as … [Read more...]
HMRC issues letters alerting contractors to tax avoidance schemes
The new IR35 Legislation has encouraged more contractors to seek work through umbrella companies. However, the rise of disguised remuneration schemes has now prompted HMRC to act.HMRC have started issuing Tax Avoidance Warning letters directly to contractors, strongly suggesting they may be involved in a DR arrangement or scheme. However, the contractors were likely deceived into signing up as a user, believing they were signing up to a true umbrella company.Are the Revenue using this as … [Read more...]
All you need to know about supply chain compliance
5 months into the IR35 Off-Payroll Legislation, and companies are still facing the effects of these changes. It is now more important than ever to have a good understanding of who you’re working with.Due to the changes, the responsibility of assessing a contractors IR35 status is now down to the end hirer. Making an accurate assessment as part of the compliance process will help avoid any liabilities that could arise from not carrying out this check.The new legislation has meant that … [Read more...]
Starting supply from September? What you need to know
Starting a supply role can be quite daunting and complex when considering your options for having your salary processed.To take the weight off your shoulders, we have put together our top tips for finding a compliant and trustworthy payroll solution.Do not believe everything you read – some articles that have been published online regarding holiday pay and the deductions that payroll providers deduct, are not factually correct. A compliant payroll provider will have staff who specialise … [Read more...]
HMRC fails to convince Lords on legal justification for Loan Charge
In a widely anticipated follow-up session on the Loan Charge by the Lords Economic Affairs Committee, HMRC failed to convince the Committees members on the legal justification for it’s highly controversial retrospective tax that has resulted in thousands of freelancers being pushed to the brink of bankruptcy. The members also poured scorn on HMRC’s poor record of cracking down on rogue umbrella companies which are, according to the BBC, still promoting schemes.The Committee directed … [Read more...]
Umbrella Payroll Provider owner receives 11 year ban for involvement in Tax Avoidance Scheme
Magnetic Push limited operated for just 11 months before it went into liquidation revealing a multi-million pound tax avoidance scheme while failing to justify £37 million expenditure. Scott Ian Rooney (40), of Leicester, was appointed sole director of Magnetic Push Limited in February 2017. Trading from a serviced office in Liverpool, the company was formerly known as ‘The Knowledgeshares Limited’ and ‘My PSU Subcontractors Limited.’After 11 months trading as Magnetic Push … [Read more...]
Don’t get confused between the FCA and the FCSA
With compliance being, or what should be a priority for any agency or end client when it comes to reviewing their payroll providers, it would appear that many are getting confused with the accreditations that play a vital part in governing the outsourced payroll sector. The most well-known names of accreditations for outsourced payroll in the UK are the FCSA (The Freelancer & Contractor Services Association) and PP (Professional Passport). The FCSA is not the FCA. The FCA … [Read more...]