Thousands of employees working within the public sector are potentially being taxed incorrectly in an ongoing fiasco surrounding their IR35.IR35 has always been a tricky piece of regulation, and it seems like it's not getting any easier to manage with time. Serious questions over the accuracy of the Check Employment Status for Tax (CEST) tool are only being underlined by courtroom defeats for HMRC over status challenges. Meanwhile, confusion over the rules has contributed to an 8% … [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...]
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: 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...]
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...]
Tunnel vision leaves Chancellor on brink of disastrous IR35 decision, warns IPSE
The Chancellor has less than a month to amend his blinkered view of the public sector IR35 reforms and avoid making a grave mistake by extending them to the private sector in the Autumn Budget.This is according to Chris Bryce, chief executive of the Association of Independent Professionals and the Self Employed (IPSE), who has spoken out after concerning reports that changes to IR35 in the private sector could be imminent.“It’s something that we suspected and feared was coming, and we’re … [Read more...]
Decimation in Public Sector: survey reveals severe impact of IR35 changes
A survey from ContractorCalculator has found 76 per cent of public sector departments have lost highly skilled contractors while 71 per cent of projects have been delayed or cancelled. ContractorCalculator says the public sector has been decimated following the controversial IR35 tax reforms that came into effect earlier this year. The company’s survey comes just four months after the implementation of the IR35 changes.Other findings include:27 per cent of public sector contractors left … [Read more...]
IR35 tax reform causes mass exodus of public sector contractors
April’s IR35 tax reform is causing a mass exodus of public sector contractor talent and delays to projects agencies are recruiting for, according to research from contracting site ContractorCalculator.The findings of their survey of 1,500 contractors, released this morning, reveals 76% of public sector departments have lost top talent due to the reforms, with the talent drain causing 71% of projects to be delayed or cancelled.The research, which follows on from anecdotal evidence that … [Read more...]
Moving back to a trusted umbrella service from an expensive PSC provider!
Following changes for off payroll working in the Public Sector, many contractors may have found themselves assessed as working inside IR35. Many end clients do not want the hassle of deciding each individual case and so have placed a blanket ban on all contractors. Many of these contractors cease operating through their own limited company, and opt instead for umbrella employment as their agency and end client have suggested. For a contractor working inside IR35 this is usually the better … [Read more...]
We are giving away iPads
It really couldn't be any easier.1 x iPad will be won by a Consultant - If you are a consultant working with us, you will be placed in the draw for every contractor you send to us. (There are no restrictions on how many times you can be entered)1 x iPad will be won by a Contractor - All new contractors registering with us before the end of June 2017, will also be placed in the draw to win. (You will need to be fully registered and in an assignment to qualify)The draw will … [Read more...]