IR35 Articles

HMRC Wins IR35 Case against BBC Presenter
marketing | 19 February 2018
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HMRC won its first IR35 ruling in seven years, as former BBC presenter Christa Ackroyd lost an appeal covering tax years between 2006/07 and 2012/2013.

In Christa Ackroyd Media (CAM) Ltd vs. Revenue & Customs, HMRC successfully argued that the ‘Look North’ presenter owed more than £400,000 in income tax and National Insurance Contributions.

The win is significant for HMRC because it is the first in a string of IR35 appeals against BBC personalities. 

Budget 2017, IR35, Private sector, Consultation,
marketing | 24 November 2017
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The Autumn Budget delivered this week by Chancellor Philip Hammond was better than contractors than many had expected.

But it did include details about a consultation to extend dreaded public sector IR35 compliance rules over to the private sector.

This is a notoriously tricky subject, so we have produced a brief guide will all the information you need to know.

What should contractors pay themselves?
marketing | 16 September 2017
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Contractor pay is important to us. Many contractors work long hours and have to perform a lot of additional administration that isn’t involved in other lines of work. So it is important that the financial rewards match the burdens of the job.

Unfortunately, the tax framework for contractors is something of a minefield. Recognising the most efficient way to draw income from your contracts is far from simple.

Between umbrella contracting, dividends and IR35 legislation, it can be difficult to know the best way of doing things. We hope to clear it up in this blog post.

Updated IR35 rules for public sector contractors
marketing | 17 July 2017
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HM Revenue and Customs (HMRC) has released more information about the rules governing off-payroll contractors in the public sector.

HMRC updated its guidance on the rules, which have been in effect since April.

The updated guidance clarifies some sticking points that have confused contractors for months.

Since 6 April 2017, responsibility for determining IR35 status has passed from public sector contractors, operating through an intermediary, to the public sector body engaging the contractor.

Although the fundamental rules are the same, the April change is seismic in terms of how the rules are applied. 

marketing | 3 April 2017
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There will be a number of things changing this April, some of which will affect them negatively.

We assess the changes and suggest some tax-efficient ways for contractors to respond.

HMRC: IR35 Reforms Could Hit Private Sector

Newly released HMRC forum discussion papers suggest that the IR35 reforms that have caused such a headache for contractors in the public sector could be introduced into the private sector as early as April 2019.

In a December meeting, HMRC acknowledged that public sector IR35 changes had fuelled some non-compliance but insisted that addressing ‘an immediate Exchequer risk’ was a main priority.

This indicates that the tax authority plans to speed up proposed changes and bring in more money by addressing IR35 non-compliance in the private sector.

Could treasury extend IR35 reforms to private sector?
marketing | 6 November 2017
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Reforms to ‘disguised employment’ IR35 rules were introduced in the public sector this year. The new rules caused confusion amongst recruiters and lead to a take-home pay cut for many contractors.

Now the Treasury has dropped its strongest hint yet that similar reforms could be introduced in the private sector – with the potential to affect millions of contractors and freelancers. 

Some public sector contractors missing out on 30% of income after IR35 changes

Some self-employed contractors lost 30% of their income in the wake of IR35 reforms that took effect in the public sector this in April.

As the dust settles around the changes IT recruitment company, CW Jobs, found that more than 70% of their clients saw a reduction in income after the IR35 reforms.

Of these contractors, a quarter saw a reduction close to 30%.

The IR35 reforms mean that contractors who work solely or primarily for public sector bodies are being taxed as if they were regular employees of that company. But are no receiving any of the accompanying benefits such as such pay or holiday entitlement. 

The chaotic introduction of the new IR35 rules
marketing | 16 June 2017
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The controversial changes to IR35 legislation, which affect contractors working in the public sector, have been in place for more than two months now. Already it is clear that the new tax policy has had a number of unintended consequences that have made life more difficult for contractors and the public sector organisations that want to employ them.

Richard Perch - umbrella.co.uk
marketing | 29 March 2017
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Umbrella.co.uk would like to congratulate Richard Perch on winning our 'Employee of the Month' award.

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