Monthly Archives: October 2017

HMRC warns loan scheme window dressing is useless

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HMRC is aware of claims to avoid the 2019 loan charge on disguised remuneration being made by promoters of tax avoidance schemes, and warns that these do not work. Participants of tax avoidance schemes that employ the use of loans are being told that they can sign documents saying that the sums they have received from their disguised remuneration scheme… Read more »

Large businesses may have underpaid tax

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HMRC believes that large businesses may have underpaid their tax to the tune of £24.8 billion in the last year, a 13 percent increase on the previous year. These figures come from Pinsent Masons, a law firm. HMRC’s Large Business Directorate suspects that the amount of underpaid tax has risen by 31 percent, up from £18.99 billion in 2014/15. Heather… Read more »

HMRC wins 22 out of 26 tax avoidance cases

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According to statistics released by HMRC, between 2016-17 the organisation won 22 out of 26 tax avoidance cases that it took to court. Of the remaining four cases, one had mixed results. These figures are down on those for 2015-16 when HMRC won 23 of the 26 cases taken to court. The cases that HMRC lost included one over corporation… Read more »

HMRC updates off-payroll guidance

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HMRC has updated its guidance notes, leading to rumours that the off-payroll rules will be applied to the private sector. Many contractors fear that the off-payroll rules that apply to the public sector will also be introduced to the private sector. Its webpage, that has just been updated, used to contain information about IR35 in the private sector. The new… Read more »

HMRC rakes in VAT from small to medium sized firms

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Value Added Tax (VAT) is becoming an increasingly important way for HMRC to increase its takings when it comes to the investigation of small businesses or contractors. Figures obtained by a Sunday newspaper show that VAT makes up 49 percent of the extra tax HMRC takes from investigations into small or medium sized firms. Although only a small increase, this… Read more »

Mutuality of Obligation still relevant

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Mutuality of Obligation (MOO) is often overlooked. It is one of the key status tests for IR35, and yet its ambiguity and HMRC’s apparent desire to diminish it leads some individuals to question whether the test is still relevant. However, MOO is a key status test for establishing whether a contractor is inside or outside IR35, and so it should… Read more »

Contractors excluded from IR35 decision-making process

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Most contractors believe that agencies and public sector bodies are unable to make accurate IR35 decisions without input from them. There are real concerns that contractors may leave the public sector as a result of the IR35 changes. These changes have meant that it is now the agencies and public sector clients who are responsible for determining the employment status… Read more »