Monthly Archives: December 2016

Clampdown on public sector contractors

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The Autumn Statement brought disappointment for trade bodies and industry as the government ignored pleas to rethink their clampdown on public sector contractors operating through Personal Service Companies (PSCs). The government has adjusted IR35 in order to tackle “false self-employment” in the public sector. At present, it is the worker, in their role as PSC Director, who must determine whether… Read more »

Contractor body calls for self-employment definition

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The Association of Independent Professionals and the Self-Employed (IPSE), has said that if a uniformly accepted definition of what being self-employed means was to be provided, it would introduce certainty to a lot of government reviews, including a new one that was recently announced. IPSE thinks that such a definition would lead to joined-up thinking about the self-employed. The Office… Read more »

National Living Wage to rise

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The National Living Wage (NLW) will be increased to £7.50 in April 2017. The increase was announced by Phillip Hammond, the chancellor in his first Autumn Statement. The increase was recommended by the Low Pay Commission (LPC). The increase represents a 4.2% rise on the current NLW wage. The NLW was introduced as the minimum wage for all workers aged… Read more »

Self-employed face worst of both worlds

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Research from a new think tank has revealed that the self-employed are worse off at work than employees. The self-employed are hit twice, as the report also revealed that many are no longer enjoying one of the traditional benefits of being self-employed, autonomy, as well. The paper entitled The employment divide: is it possible to simplify the distinction between self-employment… Read more »

HMRC updates guidance on recognising bogus calls

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HMRC recently updated its guidance on recognising bogus calls. The guidance is entitled “Genuine HMRC contact and recognising phishing emails.” The guidance includes information on how to tell if emails are fraudulent, the HMRC Short Message Service (SMS) text messages, the current list of digital and other issues that HMRC might contact taxpayers about, and how to report phishing or… Read more »

Call to align digital tax plan waiver with VAT threshold

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A call has been made to increase the level of income that exempts one-person businesses from reporting to the taxman quarterly by eight-fold. The call was made by the Chartered Institute of Taxation (CIOT) after a poll of its members revealed that 87 per cent would like the £83,000 VAT registration threshold to replace the £10,000 exemption that is being… Read more »

HMRC breaches taxpayer’s confidentiality

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HMRC has been found guilty of breaching a taxpayer’s confidentiality. After Ingenious Media failed to convince the Court of Appeal that HMRC had acted unlawfully when it had discussed a film investment scheme with journalists from the Times, the company has now won its appeal at the Supreme Court. Ingenious Media had promoted film investment schemes that were designed to… Read more »

Tax blunders cost more than avoidance

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HMRC has been stepping up its actions against tax avoiders, and yet recent statistics have reduced the justification for the organisation’s attacks on contractors. The gap between the amount of tax that should be paid and the amount that is actually collected has fallen. As a proportion of overall liabilities, the gap is down from 6.9 per cent in the… Read more »

HMRC “unwilling to give any steer” on changes to IR35

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An agency body has criticised HMRC for being “unwilling to give any steer” on the April changes to IR35 rules to the very parties that will be liable and responsible for any failure to comply with those rules. APSCo said that HMRC’s refusal to provide more detailed information on the new rules means that it will probably not be released… Read more »