If you became self-employed in the 2016-7 tax year (ie between 6 April 2016 and 5 April 2017), and you haven’t yet registered as such with HMRC, then you need to do so by this coming Thursday - October 5th or face the risk of penalties. By law you are required to register so HMRC know they have to issue you with notice to complete a self-assessment tax return and send you tax statements when required. You may also need to register separately for VAT if your VAT taxable turnover is more than … [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...]
Why private sector IR35 reform isn’t inevitable
Two pointers in an otherwise largely acceptable viewpoint piece on ContractorUK last week stuck in my craw, writes ex-tax inspector Carolyn Walsh, managing director of Andraste Accounting and CWC Solutions. And this happened not because my money’s on the public sector’s off-payroll rules not being extended to the private sector, which the piece bets that it will be. The first of the two pointers is rhetorical: “Given that HMRC most likely consider public sector reform a success so far, why … [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...]
The Criminal Finances Act will come into force this Autumn! Just as we’re getting our heads, and procedures, round GDPR
Criminal Finances Act (APSCo Quarterly Board Pack Briefing) Overview: The Criminal Finances Act came into force on 27 April 2017 and introduces new corporate offences of failing to prevent the facilitation of UK or foreign tax evasion. Part 3 will come into force through a Statutory Instrument in Autumn 2017. It introduces a new corporate criminal offence for businesses that fail to put in place reasonable procedures to prevent the facilitation of tax evasion by their employees and … [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...]
U-turn on Class 4 NICs
The Chancellor, Richard Hammond, has announced a U-turn on the proposed rise in national Insurance rates for the self-employed. In the Spring Budget it was announced that as of 6th April 2018, Class 4 NICs would be increasing to 10% from the current 9% in place, with a further increase to 11% the following year. In a letter to Tory MPs, the Chancellor revealed that he has “decided not to proceed” with the planned rise in NICs for self-employed workers, despite only announcing the measure … [Read more...]
IR35 Reform of Intermediaries Legislation: Public Authorities
HMRC has published an update on it's Off-payroll working in the public sector: reform of intermediaries legislation page to include further information for public authorities. Gov.co.uk states under Public Authorities: "For the purpose of this reform, a public authority means a public authority as defined for the purposes of the Freedom of Information Act 2000 and the Freedom of Information (Scotland) Act 2002. This definition covers government departments and their executive agencies, many … [Read more...]
Booming gig economy is bad for UK public finances, says TUC
Low-paid self-employment and zero-hours contracts are costing more than £75m a week in lost taxes and national insurance contributions, new research indicates. The rapid rise in insecure work in the UK is costing the government almost £4bn a year in lost tax income and benefit payouts, according to new research into the gig economy by the Trades Union Congress. The UK’s growing legions of low-paid, self-employed workers and those on zero-hours contracts earn significantly less than regular … [Read more...]