Chancellor Rishi Sunak has just revealed the contents of his Budget in the House of Commons.Here are the key points: UK economy forecast to return to pre-Covid levels by middle of 2022 Annual growth set to rebound by 4% this year, followed by 7.3% growth in 2022 Unemployment expected to peak at 6.5% next year, lower than 11.9% previously predicted UK to borrow a peacetime record of £355bn this year. Borrowing to total £234bn in 2021-22 Debt as a share of GDP to fall … [Read more...]
£11 billion boost for taxpayers facing difficulty due to coronavirus
Anyone who has difficulty paying their second 2019 to 2020 Self Assessment payment on account can take advantage of automatically deferring the payment until 31 January 2021, HMRC is reminding taxpayers.The second Self Assessment payment on account for 2019 to 2020 is ordinarily due at the end of July, but the government previously announced it is supporting the self-employed and others by allowing them to defer this payment.This option to defer is on top of additional support … [Read more...]
Chancellor Rishi Sunak has spoken, support for self-employed is now confirmed
Chancellor Rishi Sunak set out plans for 80% wage subsidies for staff kept on by employers last week and the PM said he wants similar protection for freelancers. However, he stated there was “particular difficulties" for freelancers who are not on Pay As You Earn (PAYE) schemes, but that he wanted to achieve "parity of support" across the workforce.With 5.2 million self-employed workers in the UK, it was only a matter of time before the chancellor put a plan in place to support the self – … [Read more...]
IR35 is coming regardless of Brexit or a General Election
Just because government are unable to sort out Brexit, this does not mean that IR35 scheduled in for April 2020 is going to be delayed. Regardless of Brexit, a General Election and possible leader change, IR35 will still be in place and actioned. There has been much mentioned recently that with a General Election and possible change in government IR35 will be shelved. This is not going to happen, according to a representative from Saffrey Champness, one of the UK's Top 20 accountancy … [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...]
‘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...]
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...]
Who are the UK’s self employed? New research sheds light on those working solo
Eight of the nine segments of self-employed people, who employ no one, say they are as satisfied, or more satisfied, than employees doing a similar jobNew research from the Centre for Research on Self-Employment (CRSE), in conjunction with the Institute for Employment Studies (IES), has revealed the make-up of the UK’s self-employed community.The report, which has identified nine distinct segments which divide the UK’s broad solo self-employed population, has revealed that those who work … [Read more...]
Tax-Free Childcare
In March 2016, the Government confirmed their plans for a Tax-Free Childcare scheme to be rolled out gradually from early 2017. Tax-free Childcare will provide working parents and now self-employed workers with another option for tax savings on their childcare direct through the Government.You can sign up for Tax Free Childcare now! This is a great step for working parents as this will help all those employed and now those self-employed.Childcare vouchers will remain in place and you … [Read more...]