Mini umbrella company (MUC) fraud reduces tax payments to HMRC including PAYE, National Insurance and VAT. This has resulted in a fraudulent supply chain leading to financial and reputational damage to businesses and workers.What is Mini Umbrella Company Fraud?The fraud is usually based around the abuse of two Government incentives which are aimed at small businesses – the VAT Flat Rate Scheme and the Employment Allowance. However, this type of fraud can also result in the non-payment of … [Read more...]
Medical Workers – Ltd to Umbrella pre IR35
The medical industry is one that will undoubtedly be affected by the changes IR35 will bring, yes, it is finally coming around again. Although there have been hopes that it will be delayed further, end clients are being told to prepare. HMRC have also stated that PSC’s won’t be subject to IR35 compliance checks, putting further emphasis on the hirer to determine status and possibly be the ones penalised if they get it wrong.With many workers and Locums trading as Ltd companies still within … [Read more...]
Tax avoidance, what’s the latest?
Back in April, we posted a blog surrounding NHS workers being targeted by tax avoidance promoters and it does not stop there.News surrounding tax avoidance schemes are still circulating outside of the NHS services. HMRC have shared information surrounding the schemes and what to look out for. Information can be found hereMost umbrella companies are compliant with tax rules. However, there are some promoters of tax avoidance schemes using comparison and broker websites, as well as direct … [Read more...]
EU Settlement Scheme Update
Over 4 million applications have been made to the EU Settlement Scheme according to the latest Home Office figures.The latest statistics show that 3,693,400 applications have been received from England, 204,700 from Scotland, 67,200 from Wales and 66,300 from Northern Ireland.If you apply for the EU Settlement Scheme successfully, you will be able to continue living and working in the UK after the 30th June 2021.You will receive either:Settled statusPre-settled statusWhat … [Read more...]
Temporary staff numbers increase following lockdown
Availability of candidates saw a rise for the time in 20 years, reflecting redundancies announced by many companies across Britain following lockdown. It is estimated there has been over 700,000 job losses so far due to the pandemic, with numbers expected to reach over 1 million by the end of 2020.Billing from temporary hiring’s rose for the first time in 7 months. There was also a rise in billings from companies hiring permanent workers in August but the increase was worryingly small, the … [Read more...]
Two more arrests made in HMRC furlough fraud crackdown
Two further arrests have been made in connection with fraud relating to the CJRS for the sum of £70,000. An accountant from Romford and a Company Director from Walthamstow have both been arrested on suspicion of fraud by false representation and money laundering.Both individuals have since been released under investigation, but devices and business records have been retained by police.This is not the first arrest made in connection with suspected fraud, back in July arrests were made in … [Read more...]
CRJS Government Guidance Update
The government have issued guidance to help employers repay HMRC if they have over claimed through the Coronavirus Job Retention Scheme.We have put together some key points to assist employers with repayments in line with the guidance supplied by HMRC.If you have uploaded a claim in error and want to delete it, you must delete the claim via the online service within 72 hours. If you have made an error in a claim that has resulted in an over claimed amount you must pay this back to … [Read more...]
What you need to know about staff returning to work post Covid-19
Following The Prime Ministers announcement regarding the further easing of lockdown, measures will need to be in place to start planning for staff to return to work.The initial response to the pandemic was to enforce lockdown and for employees to work from home where possible. Meaning a large portion of the UK working from home. Steps had to be put in place to accommodate the changes to many businesses and ensure staff received support during lockdown to protect their wellbeing.Many HR … [Read more...]
EU Settlement scheme update – 1-year left to apply
The 30th June 2020 marked the 1-year countdown for the EU settlement scheme application deadline. Already 3.6 million applications have been submitted and more than 3.3 million applications have been granted.EEA citizens and their family members who have been granted pre-settlement or settled status have secured their rights in UK Law, ensuring that they will have the evidence they need to continue living and working in the UK.The lastest detailed official Statistics show that the … [Read more...]
Returning NHS workers targeted by tax avoidance promoters
Individuals who are returning to the National Health Service (NHS) to help to respond to the outbreak of COVID-19 have been targeted by immoral promoters of tax avoidance schemes. HMRC is advising affected individuals to be wary of signing up to these schemes.The schemes on offer all have common features, but they may be described in different ways. One consistent element will be that the scheme attempts to disguise the true level of earnings, which should be subject to Income Tax and … [Read more...]