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 »

Contractors want employment rights if inside IR35

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For a long time, the majority of contractors have not shown any desire to gain employment rights. A survey conducted in 2016 showed that 80 per cent of contractors were content with working via their own PSCs without sick pay, holiday pay, paternity or maternity pay and pension contributions. For many self-employed people, such benefits would have gone against what… Read more »

BBC freelancer facing £400,000 tax bill after IR35 investigation

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The BBC has recently been making the news for the wrong reasons. As a public sector body, the BBC came under severe criticism for using contractors or freelancers when many of its highly paid staff should have or could have been on the payroll. The government brought in stringent and controversial IR35 changes to the public sector to prevent what… Read more »

IR35 outlook for private PSCs in April 2019

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Mark Lee, the founder of ContractElite, believes that the incentive for changing the rules of IR35 is not to create greater fairness between the self-employed and the employed but to increase the amount of money raised through taxation. Chancellor Philip Hammond has already said that the increasing number of people choosing to become freelancers or contractors rather than taking on… Read more »

Online tax appeals have higher success rate

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Taxpayers considering appealing against HMRC might want to consider going online, as more of these appeals go through the first time without rejections when submitted in this manner. The Ministry of Justice (MoJ) said last week that its new online service for contesting tax bills is already “drastically cutting the number of applications being returned.” The decrease in the number… Read more »

Adverts promoting misleading contractor loan scheme banned

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HMRC does not receive praise often, but by acting to prevent contractors from inadvertently entering into agreements leading to tax avoidance, it has done these workers a good turn. Some tax avoidance scheme promoters advertise extravagant claims of being able to legally save contractors from paying large amounts of tax. HMRC has had some recent successes in challenging advertisements that… Read more »

HMRC wins IR35 case

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For the first time in seven years, HMRC has won an IR35 case. It brought the case against Christa Ackroyd Media. Christa Ackroyd, who used to present Look North, lost her appeal, with HMRC saying that she owed National Insurance Contributions and tax for the years 2006/7 to 2012/13. The presenter will have to pay £419,151. This is the first… Read more »