Latest Contractors
Latest Contractors
Off-Payroll Worker Tax Rules: Be prepared!
Knowledge based contractors working in the private sector will hopefully now be well aware that, subject to any possible Government last minute change of heart, new tax rules are coming next April. For many, who are not currently following IR35 rules, this will mean a large increase in the tax they pay; perhaps tens of…
New Off-Payroll Working Tax Rules: Y/N?
Readers, particularly knowledge based contractors working through their own personal service companies, will hopefully now be familiar with the new ‘off-payroll working’ tax rules being introduced in the private sector on 1 April 2020. These are being introduced as part of the Government’s general strategy over recent years to eliminate tax avoidance, tax evasion, and…
Changes in VAT for Contractors and Subcontractors
Confused by the new CIS reverse charge VAT rules that come into effect from 1 October 2019, then HMRC have issued further guidance at https://www.gov.uk/guidance/vat-domestic-reverse-charge-for-building-and-construction-services#overview. The basics are as from 1 October 2019 if you are a VAT registered subcontractor working for a contractor you will no longer be paid for the VAT element…
IR35: private sector off-payroll rules for contractors
This week HMRC have published draft legislation that will affect private sector personal services companies (PSCs) from 6 April 2020. PSC’s supplying services to medium or large-sized organisations will no longer decide if they are employed or self-employed, the end engager will assess this. If caught by these rules, known as IR35, employment taxes and…
Lorraine Kelly wins IR35 battle with HMRC; would you?
A recent series of HMRC high-profile court cases have brought Contractors back into the tax spotlight. TV presenters Lorraine Kelly, Kay Adams and Christa Ackroyd have all defended their working practices with mixed success. HMRC claimed all three should have been taxed as employees rather than business owners. HMRC won the case against Ackroyd…
HMRC wants your opinion – IR35 private sector consultation opens
The expected consultation period to roll out “off-payroll working rules” to the private sector has begun. HMRC propose that, from April 2020, medium and large sized private sector end-clients will be responsible for deciding if workers fees will be subject to PAYE and national insurance. The consultation document advises HMRC will seek to address…
Budget 2018: IR35 rules change for private sector
The Autumn Budget 2018 confirmed that many private sector contractors will no longer be responsible for deciding if they are caught by the IR35 rules. Engagers who are medium or large organisations will now decide the IR35 status of the PSCs they contract with. What will constitute a medium or large organisation? It is not…
Increasing publicity over IR35
In the run up to the Autumn Budget, where it is widely speculated the Government will clamp down on IR35 in the private sector, barely a week goes by without another IR35 case being in the news. Employment tribunal claims are increasingly being launched by those caught by the IR35 reforms of the public sector.…
Career Change? Think Contracting.
There are many benefits over employment. Changing careers can be a challenge but leaving the employment wage treadmill to become a contractor can increase your earnings, saving on tax and national insurance as well as providing more flexible working hours. Contractors are essentially self-employed individuals who work on projects for a set period of time…