HMRC levies tax bills at contractors’ agencies

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Contractors’ recruitment consultants are seeing the first signs of HMRC enforcing the Criminal Finances Act of 2017 as they begin to receive demands from the tax body. These consultants work for staffing agencies to negotiate contracts, screen candidates and draw up shortlists of candidates for their clients to interview. The Freelancer and Contractor Services Association (FCSA) said that the consultants… Read more »

HMRC’s CEST figures suggest widespread wrongful tax treatment

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Recent figures concerning HMRC’s Check Employment Status for Tax (CEST) tool show that thousands of contractors may have received wrongful tax treatment and may have grounds for an appeal. This serious error is thought to be a result of unlawful blanket assessments carried out by public sector employers. HMRC did not give up its figures easily, however, and the organisation… Read more »

Boost contractor pensions with bonus, report recommends

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A new report on better pension provision for the self-employed has recommended that all workers receive a flat-rate tax bonus of 30%, regardless of their employment status. This was the main proposal outlined by the Royal Society of Arts (RSA), which made an overall total of 12 recommendations in its report. The RSA said that workers should get the bonus… Read more »

Daily penalties to affect late tax form returners

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Individuals who have not turned in their tax returns for 2016/17 by the due date will soon begin to receive daily penalties of £10. The Self-Assessment tax return forms were due by 31 January 2018, and people who did not submit their forms on time will have already received a £100 penalty. Those who still failed to turn in their… Read more »

Guidance updated for umbrella company contractors

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A guide for contractors who work via an umbrella company recently received an update to help such workers understand their pay and tax positions. In his Good Work report, Matthew Taylor made recommendations for more transparency, and as a result, the Low Incomes Tax Reform Group and the umbrella representative group PRISM produced a fact sheet for workers who are… Read more »

Information on transferring apprenticeship funds

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Since April 2018, employers based in England who pay the apprenticeship levy are able to pay for apprenticeship training and assessments by transferring their apprenticeship service funds to other organisations. Apprenticeships are a devolved policy, so this change only applies to employers located in England. Each of the nations in the UK has its own rules for managing the apprenticeship… Read more »

UK to exit EU VAT regime in January 2021

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The UK is set to leave the EU on 31st March 2019. The UK will also leave the EU VAT regime, which could result in traders facing major costs and new admin requirements. The UK’s exit from the EU will come at the end of the two-year notice period begun by triggering by Article 50 of the Lisbon Treaty. This… Read more »

Dividend allowance changes for PSCs

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Contractors who work via their own PSC should prepare themselves for a reduction in their dividend allowance. From next month, the dividend allowance for contractors working through their own PSC will be £3,000 less. The change is due to be introduced on 6th April this year, and will see the allowance go down from its current level of £5,000 to… Read more »

HMRC waits on £1.2 billion from anti-avoidance package

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A freelance trade group has warned of a range of new tax measures that are designed to clamp down on tax avoidance and evasion and will raise £1.2 billion for HMRC. The Finance Act 2018 includes measures that relate to new criminal offences referring to offshore assets, activities, income and tax responsibilities. The new measures have been highlighted by the… Read more »

HMRC still wrongly claiming all contractors caught by MOO

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HMRC is still claiming that all contractors are subject to a Mutuality of Obligation (MOO). However, the organisation has still not revealed its reasoning behind this assertion. This is according to the minutes of the IR35 Forum from February 2018. In response to a Freedom of Information request from ContractorCalculator, HMRC said that it would provide the arguments that support… Read more »