Tax & IR35 News

Autumn of discontent for contractors

With the date for the Autumn Statement now set for 23 November, chancellor Philip Hammond will want to steer a steady course for post-Brexit Britain.

Autumn Statement Icon


The big question on contractors' lips is, 'How will the public sector IR35 reforms affect us and the industry moving forward?' We present the facts and the potential fallout from the draconian new rules.

Read more...

MTD delay may not be enough

Treasury Committee warning to Chancellor over Making Tax Digital


Whilst HMRC have agreed to delay the introduction of MTD (Making Tax Digital) until 2019 to provide further time for larger businesses to adjust, Andrew Tyrie, Chairman of the Treasury Committee, has said that this may not be enough.

Read more...

Small businesses struggling with RTI

HMRC keen to learn why PAYE errors occur

Real Time Information (RTI) has been an integral part of the PAYE landscape now for over 3 years although the rules were relaxed for micro-employers, ie those with up to 9 employees, until April of this year.

RTI Read more...

Director escapes company's PAYE debt

HMRC unable to pin SME's tax and NIC debt on its director

PAYE Icon

HMRC are increasingly looking to legislation contained in Reg. 72 Income Tax (PAYE) Regulations 2003 and Reg. 86 Social Security (Contributions) Regulations 2001 that enables PAYE tax and NIC debts to be transferred to the employee in specific circumstances.

Read more...

Delay in proceedings for SME's

MTD put back a year

Following concerns about the ambitious timetable for implementing MTD (Making Tax Digital), HMRC have delayed its introduction until 2019 to allow businesses more time to prepare and adjust.

Read more...

Agency Returns: How are you finding it?

Are agencies coping with new reporting requirements?

Agencies and other employment intermediaries have now had to file quarterly returns for all those workers engaged on a self-employed basis, for nearly 1 ½ years now. To enable HMRC to understand how agencies are dealing with this and their awareness of what is required and the associated penalty regime, the department commissioned a qualitative research study. This study, which involved 60 in-depth interviews with employment intermediaries, examined:

Read more...

IR35: Still not right

OTS response to proposed IR35 reform in public sector

ir35 icon

Whilst we await the next step following the end of the consultation process of reforming IR35 within the public sector, the Office of Tax Simplification (OTS) have published their response to the Government’s consultation document, Off-payroll working in the Public Sector:Reform of the Intermediaries Legislation.

Like many critics of these proposals, the OTS are not convinced that they will simplify matters but rather add complexity by:

Read more...

Guilty by association

All involved in tax avoidance schemes will be penalised

association icon

HMRC has recently published a consultation document, ‘Strengthening Tax Avoidance Sanctions and Deterrents: A discussion document’ which proposes sanctions aimed at everyone involved in the birth of tax avoidance schemes which are defeated by HMRC. This follows the government’s announcement at Budget 2016, that it would explore options to introduce negative consequences for those who enable tax avoidance.

Read more...

Contractor Doctor

CL1 Contract: IR35 Friendly?

Q. I have secured a contract position in a UK government dept that uses the CAPITA CL1 framework. So the contract will be CL1. Everything I have read online about this contract points to it not being IR35 or SDC friendly. Therefore can I assume that because it is a CL1 contract it will be deemed inside IR35 just by the fact that's its CL1? Is there any point getting a contract review done?

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IR35: Multiple Clients

Q. I am considering taking a contract as an Interim Recruiter and, as it would be my first Contract i have considered how I can remain outside of IR35. One of my thoughts is that if I genuinely operate a 'Talent Consultancy' (advising on how to source and conducting search and selection campaigns etc) on the side of my contracting duties, I would be able to remain outside of IR35. Would this be the case?

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Public Sector: IR35 Concerns

Q. I am in a public sector IT contract. I had a IR35 contract review that was deemed outside. My working practises have not been reviewed.

Is it wise to continue working with the same contract for my client beyond April 2017 given the risk of being found inside IR35.

I am concerned HMRC might take a closer look at my engagement prior to April 2017 and send a demand for PAYE and NIC. Is this irrational?

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Am I inside or outside IR35?

Q. I am a Locum Pharmacist working in the NHS. I want to ascertain as to whether I am in or outside the IR35 legislation. Please can you advice me as it is very worrying.

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Agency Returns

Q. I'd like ask about the HMRC intermediaries quarterly report that CW reported, Penalties now automatic for employment intermediaries.

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Investing in a New Business

Q. I know someone who is intending to start a new business, selling wine both online and at a high street shop. I would like to use my limited company's money to invest in his new business. As I've seen on TV, I would buy say 10% of his business for £10k. I would create his website / manage his IT. Then at some point in the future he would pay back; perhaps as dividends paid to myself / my limited company. What are options or pitfalls here? Is it just a bad idea to have one company invest in another?

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Terminated Contracts

Q. My agency terminated my contract with no notice whatsoever, in breach (I believe) of the contract between us, and furthermore are refusing to pay any notice period, claiming "only worked days are paid". I believe the contract requires them to give the proscribed period of notice of termination, which they did not do. As a result I am significantly out of pocket because of travel & accommodation expenses etc. The agency are now being evasive & uncommunicative (seems like they're ignoring me in the belief/hope that I'll give up & go away). What steps can I take to force the agency to abide by their contractual obligations?

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New to Contracting

Q. I work in Fin Serv, I'm leaving employment and new to contracting - looking to pick up my first contract over the next couple of months. Where can I get help/hints on writing an effective business profile and where would I find a list of agencies and job sites to post my availability on?

Read more...

Tax & IR35 News

Autumn of discontent for contractors

With the date for the Autumn Statement now set for 23 November, chancellor Philip Hammond will want to steer a steady course for post-Brexit Britain.

Autumn Statement Icon


The big question on contractors' lips is, 'How will the public sector IR35 reforms affect us and the industry moving forward?' We present the facts and the potential fallout from the draconian new rules.

Read more...

MTD delay may not be enough

Treasury Committee warning to Chancellor over Making Tax Digital


Whilst HMRC have agreed to delay the introduction of MTD (Making Tax Digital) until 2019 to provide further time for larger businesses to adjust, Andrew Tyrie, Chairman of the Treasury Committee, has said that this may not be enough.

Read more...

Small businesses struggling with RTI

HMRC keen to learn why PAYE errors occur

Real Time Information (RTI) has been an integral part of the PAYE landscape now for over 3 years although the rules were relaxed for micro-employers, ie those with up to 9 employees, until April of this year.

RTI Read more...

Director escapes company's PAYE debt

HMRC unable to pin SME's tax and NIC debt on its director

PAYE Icon

HMRC are increasingly looking to legislation contained in Reg. 72 Income Tax (PAYE) Regulations 2003 and Reg. 86 Social Security (Contributions) Regulations 2001 that enables PAYE tax and NIC debts to be transferred to the employee in specific circumstances.

Read more...

Delay in proceedings for SME's

MTD put back a year

Following concerns about the ambitious timetable for implementing MTD (Making Tax Digital), HMRC have delayed its introduction until 2019 to allow businesses more time to prepare and adjust.

Read more...

Agency Returns: How are you finding it?

Are agencies coping with new reporting requirements?

Agencies and other employment intermediaries have now had to file quarterly returns for all those workers engaged on a self-employed basis, for nearly 1 ½ years now. To enable HMRC to understand how agencies are dealing with this and their awareness of what is required and the associated penalty regime, the department commissioned a qualitative research study. This study, which involved 60 in-depth interviews with employment intermediaries, examined:

Read more...

IR35: Still not right

OTS response to proposed IR35 reform in public sector

ir35 icon

Whilst we await the next step following the end of the consultation process of reforming IR35 within the public sector, the Office of Tax Simplification (OTS) have published their response to the Government’s consultation document, Off-payroll working in the Public Sector:Reform of the Intermediaries Legislation.

Like many critics of these proposals, the OTS are not convinced that they will simplify matters but rather add complexity by:

Read more...

Guilty by association

All involved in tax avoidance schemes will be penalised

association icon

HMRC has recently published a consultation document, ‘Strengthening Tax Avoidance Sanctions and Deterrents: A discussion document’ which proposes sanctions aimed at everyone involved in the birth of tax avoidance schemes which are defeated by HMRC. This follows the government’s announcement at Budget 2016, that it would explore options to introduce negative consequences for those who enable tax avoidance.

Read more...

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