Monthly Archives: August 2017

Private sector IR35 reform rumours are top concern

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Recent research has revealed that the rumours surrounding possible reform of IR35 in the private sector are amongst contractors’ biggest concerns. In April, there were changes to IR35 in the public sector, and rumours are now circulating about the future of IR35 in the private sector, which is causing concern to many contractors. The survey, which was conducted by Qdos… Read more »

Avoid the umbrella company making advance gross payments which are unlawful

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ContractorCalculator has uncovered a new umbrella company scheme that could leave contractors with huge tax bills. The scheme became known when ContractorCalculator was investigating an unusual payslip and contract from a public sector contractor who worked via an umbrella company. The scheme involved issuing gross payments in advance to their contractors. These payments were taxable at a later date. The… Read more »

Addison Lee ruling reinforces that work conditions override written contract

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With another company being defeated at an employment tribunal, contractors have received a warning, if any was needed, that they need to pay close attention to their working practices in order to avoid IR35 risk. The case in question was Gascoigne vs Addison Lee Ltd. Chris Gascoigne had been employed by Addison Lee Ltd as an “independent contractor”; however, Judge… Read more »

T&S rules wipe out PSCs

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Between May and June of this year, the number of incorporated businesses failing has increased mainly because connected personal service companies (PSCs) have collapsed. The Insolvency Service said that the collapse of PSCs was the reason that the overall level of insolvencies rose during the second quarter by over 12 per cent to 4,457. The Insolvency Service said: “This was… Read more »

Construction self-employment reaches over 1 million

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Almost half of all the people employed in the construction industry are now self-employed. The latest figures from the Government reveal that in 2016/17, at least 1.1 million workers in the construction industry were being paid via the Construction Industry Scheme (CIS). This number has jumped by 8 per cent from the previous year, when 993,000 were being paid via… Read more »

IPSE calls for progressive approach to employment status

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The Association of Independent Professionals and the Self Employed (IPSE) has called on the Government to adopt a more progressive approach to employment status if it is to align its policy with modern working practices. The call comes after the release of the Taylor Review of Modern Working Practices. IPSE Chief Executive Chris Bryce praised the motives behind the report… Read more »

HMRC sharpens the knife for contractors using loan arrangements

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Draft legislation published last month has reiterated an aggressive plan to recoup retrospective ‘disguised remuneration’ provided to contractors in the form of contractor loans or employee benefit trusts (EBTs). All such arrangements made since 9th December 2009 will be subject to immediate income tax and national insurance charges. On the 5th April 2019 any unpaid amounts will attract a combined… Read more »