Off-Payroll plans unnecessary

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A leading employment status and tax expert has warned that the Off-Payroll rules proposed by HMRC are both unnecessary and burdensome to contractors. The rules see compliance requirements and tax liability being shifted along the supply chain. According to David Kirk of David Kirk and Co, the plans include everyone involved in the chain in the compliance process. This means… Read more »

Crackdown on late paying companies

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A number of large companies, including Vodafone, Balfour Beatty and Costain, have been suspended from a voluntary punctual payment code. In total, 12 companies have been affected. This has been carried out by an organisation that works for the government. The 12 companies are amongst 2,500 who are enrolled in the Prompt Payment Code. This code is administered by the… Read more »

Contractors paying HMRC earlier if insolvent

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There are only a few weeks remaining for contractors who work via a Limited Company to have a say on plans to push HMRC up the list of creditors to be paid if a company goes bust. The consultation period closes on Monday, May 27th. The one single issue that is worrying most PSCs is the elevation of HMRC up… Read more »

Penalty warning for MTD

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The Association of Taxation Technicians (ATT) has advised businesses who are already enrolled for Making Tax Digital (MTD) to submit their latest VAT returns as soon as possible. A failure to do so could see those businesses issued with penalties. MTD was introduced on 1st April 2019, but businesses did not have to sign up at that point. Many professionals… Read more »

IR35 extension is stealth tax

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The Association of Recruitment Consultancies (ARC) has said that the extension of IR35 into the private sector is akin to the introduction of a new tax and if the proposals go ahead, this will have far-reaching economic and political ramifications. Adrian Marlowe, who is the chair of ARC, said: “The proposals are subject to a consultation that declares the new… Read more »

Blanket approach to inside IR35 assessments

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A Freedom of Information request by ContractorCalculator has revealed some troubling statistics about IR35 assessments. The request showed that 98% of the IR35 employment status assessments that HS2 carried out last year deemed that contractors had been caught by the Off-Payroll rules which, in turn, added to the suspicions of non-compliance with the public sector rules. HS2 confirmed that out… Read more »

Self-employed in dark about digital tax changes

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Over a quarter of the self-employed “know nothing” about switching to the new VAT rules for the government’s Making Tax Digital scheme. This is according to research by the IPSE. The 1st April sees the new Making Tax Digital (MTD) rules come into effect. From this date on, VAT-registered companies will need to keep digital VAT records and they will… Read more »

HMRC begins to issue late filing penalties

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HMRC is beginning to issue fines for missing the self-assessment tax returns. This is earlier than was expected. The penalty for not filing a tax return by 31st January 2019 is £100. In February 2019, HMRC announced that the issuing of late filing notices would be delayed because of Brexit-related pressures. The Association of Taxation Technicians (ATT) has expressed concerns… Read more »

MPs challenge Off-Payroll (IR35)

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Contractor concerns about IR35 (Off-Payroll) rules being applied to the private sector have been aired during MP’s debate on the subject in the houses of Parliament. Among the problems that were discussed was public sector non-compliance, the impact of the proposals on the mobility of workforces, challenges to HMRC’s Check Employment Status for Tax tool, and the need to support… Read more »

Future IR35 under threat as HMRC doctors research

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HMRC has admitted that information was omitted from published research. This research concerned the introduction of IR35 into the private sector and HMRC admitted that the information that was omitted could impede the introduction of IR35 into the private sector. HMRC made its admission after it received a Freedom of Information (FOI) request from ContractorCalculator. In its response, HMRC admitted… Read more »