One million couples missing out on £900 tax break

HMRC says that one million married couples can claim a £900 tax break , just in time for the summer holidays. But time is running out.

Around three million married and civil partnered couples have already claimed the Marriage Allowance, which is worth up to £238 per year.

Couples who have not claimed for the tax break yet can backdate their claim to boost their payment by up to £900 this year.

Private Sector IR35 Could Cost Contractors £14,000
Editor | 19 June 2018
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As the government consults on plans to extend IR35 rules to the private sector, self-employment organisation  IPSE claims that the changes could ‘strangle’ contractor living standards.

IPSE claims that the ‘inhibiting, anti-business’ policy could cost contractors an average of £14,000 per year in lost income.

Using average day rate (£430) and average weeks worked (42 weeks per year) figures from IPSE’s Freelancer Confidence Index, they calculate that a contractor’s take home pay will drop significantly.

BBC Presenter Forced to Use PSC
Editor | 10 May 2018
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Joanna Gosling is the latest BBC presenter to complain that the public service broadcaster forced her to operate through a limited company, exposing her to HMRC legal action.

Alongside BBC colleagues David Eades and Tim Willcox, Gosling is appealing against a £920,000 tax bill , which HMRC argues is owed in back income tax and National Insurance contributions.

HMRC claims that the presenters were within the IR35 rules and operating in ‘disguised employment’.

The court heard that the three presenters were “ pushed by the BBC ” into creating the personal service companies. These companies allowed the corporation to avoid paying employers’ National Insurance contributions and came with very few benefits.

 

Government to ban slow paying contractors from public works

The Government has said that it will ban tier one contractors from bidding for work if they don’t pay their suppliers promptly.

As part of a broader package of measures designed to protect smaller businesses, the Government announced plans to exclude suppliers from major Government procurements if they cannot demonstrate “fair and effective” payment practices with their subcontractors.

Private sector IR35 consultation expected soon

Last week, the Government’s Spring Statement warned that a consultation on extending IR35 off-payroll working reforms to the private sector could be due soon.

Off-payroll working didn’t make it into the Chancellor’s speech, but buried in a supplementary document the government did make mention of the rule changes.

The document says that “in the coming months,” the Government will publish “a consultation on how to tackle non-compliance in the private sector, drawing on experience of the public-sector reform.”

 

Early Bird Self Assessment Discount Umbrella Accountants

Early bird offer - Discounted price of £150 + VAT – Ends 31st August

Tired of finishing that self-assessment with just a few late January days to spare? This could be the year when you finally make a change.

It’s a feeling that many contractors will be all too familiar with. One minute you’re toasting the end of another successful year, the next you’re staring down at a mountain of work you didn’t get done before the Christmas break and, all the while, precious seconds are ticking down on the self-assessment deadline.

Sure, you don’t really want to think about it while the World Cup is on and the sun is out, but completing your tax return paperwork early does have a lot of benefits.

Here are four that we think are most important.

Government seeks views on IR35 non-compliance in the private sector

The government wants to hear from you as part of an attempt to tackle IR35 non-compliance in the private sector.

It comes after changes to IR35 rules in the public sector caused problems public authorities and contractors

Also known as off-payroll working, IR35 rules are designed to stop employees working and paying taxes as if they were contractors.

The rules apply to contractors working through personal service companies who, if they were engaged directly by the company, would effectively be employees.

Businesses: Don’t get stung by GDPR
Editor | 27 April 2018
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On May 25th 2018 a new EU regulation could mean big fines for businesses of all sizes if they don’t follow new personal data and privacy rules.  

General Data Protection Regulation (GDPR) will replace the 1995 Data Protection Directive and will restrict the way that businesses collect, store and export personal data.

This includes data held on customers, potential customers, suppliers, employees and any other EU residents.

 

Things to do before the end of the tax year
Editor | 29 March 2018
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For many contractors, a new personal tax year starts on April 6th. There are some important things that you can do now to minimise the amount of tax you owe and to make the process of paying taxes simpler.

 

How Much Will April Dividend Cut Cost You?

A cut in dividend allowance will cost some contractors more than £1,000 per year when it takes effect from April.

The allowance on dividends will be cut from £5,000 to £2,000 as the chancellor continues his raid on self-employed finances.

This means that individuals will not pay taxes on the first £2,000 of dividend income, regardless of what non-dividend income they have.

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