Latest Blogs in Contractors
Paul Jefferson
16th June 2016 Flat Rate Sector

Contractors: Don’t pay too much flat rate VAT. Just three weeks ago it was reported that the VAT flat rate scheme guidance was flawed. The ATT had highlighted that HMRC’s practice was costing traders, as they were forced to pay more VAT to HMRC under the flat rate scheme than the law required. HMRC has…

Vanessa Pearson
5th May 2016 Public Purse

IR35: Could proposed changes actually result in lower taxes for HMRC? As previously reported, the government are consulting into reforming IR35 for public sector workers. They wish to make public sector engagers responsible for determining the IR35 status of the their contractors. Research by ContractorCalculator has predicted these proposals will result in a £115m tax loss…

Vanessa Pearson
23rd March 2016 IR35 Anti-Avoidance Proposals

Office of Tax Simplification: Suggest look-through companies, to deal with IR35. The OTS have been reviewing the taxation of Personal Service Company’s, with the aim of dealing with the “issue of IR35”. They are recommending the shareholders of PSC’s pay income tax on the company profits directly, instead of via corporation tax. This “look-through” taxation…

Vanessa Pearson
18th March 2016 Public Sector Contracts

Budget 2016: The end of public sector contracting? It was announced in the Spring Budget 2016 that engagers in the public sector will be responsible for deciding the IR35 status of their contractors from April 2017: Click here for the PDF It is estimated that 20,000 Personal Services Company’s working in the public sector are avoiding…

Ian Piper
28th December 2015 Targetted Anti-avoidance Rule

10% Tax Rate: Loophole closed for serial liquidators. The 2015 Autumn Statement, recently published as the Finance Bill 2016, introduces a new targeted anti-avoidance tax rule to stop contractors regularly liquidating their company then starting a new company, to extract profits at a personal tax rate of just under 10% rather than the usual effective rate of 25%+:…

Ian Piper
23rd October 2015 Disguised Employment Anti-Avoidance Legislation

IR35: CIOT and HMRC both suggesting changes required. The Chartered Institute of Taxation (CIOT) has suggested a new approach to tackle those who are ignoring or manipulating IR35 rules so they can avoid tax payments to HMRC. HMRC have recently suggested transferring the IR35 compliance obligation from the worker and his/her personal service company (PSC) to…

Vanessa Pearson
14th August 2015 24 month Rule

Contractors: Beware possible end to 24 month travel & subsistence tax rules. The more observant readers of the recent Summer Budget will have noticed that tucked away from the main headlines was the announcement that HMRC have started a 3 month consultation exercise into:     Employment Intermediaries and Tax Relief for Travel and Subsistence The aim…