HMRC Launches Private Sector IR35 Consultation

HMRC has launched a fresh consultation on changes to off-payroll Intermediaries Legislation (IR35), due to take effect in the private sector from April 2020.

The changes would see reforms introduced in the public sector in 2017 extended to the private sector.

The change will affect contractors that operate through an intermediary like a limited company or personal service company (PSC).

Instead of judging their own IR35 status, the private sector organisation that engages the contract will make this decision. It could mean that more contractors are deemed ‘inside IR35’ and liable to  pay income tax and National Insurance contributions.

Why Recruiters Need a Preferred Supplier List
Editor | 4 February 2019
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A preferred supplier list or PSL is list of pre-approved suppliers from which managers and employees can procure goods and services at a lower risk.

These lists are common for recruitment agencies as the contractors working through them tend to use the services of umbrella companies and other professional services providers.

Most agencies will require their PSL to be audited annually by external bodies, this reduces the likelihood of expensive compliance issues and other supply chain risks.

Woolly Underwear and Other Expenses Rejected by HMRC
Editor | 28 January 2019
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With less than a week to go until the 31 January Self-Assessment deadline, HMRC has provided a bit of light relief by posting some of the weird and wonderful excuses from people who have missed the deadline in the past.

 

One late filing Brit tried to blame his mother in law, another tried to blame a junior member of staff and one even blamed the postbox.

 

The tax authority also posted a list of failed expense claims that people have tried to get away with, including five years’ worth of woolly underwear.

Christmas Plans: Don’t Forget Your Self-Assessment
Editor | 6 December 2018
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As Christmas draws closer, many contractors will be finalising their plans for the festive season.

You know who is in charge of wrapping presents, what time you’re going to travel to the in-laws and who’s cooking the turkey. But you shouldn’t forget about the tax return deadline in amongst all the merriment.

After all, you only have until 31 January to complete and pay your Self-Assessment.

What expenses can limited company contractors claim

If you contract through a limited company, there are certain expenses that you can claim against your income to reduce your tax liability.

If your limited company makes £50,000 and you claim back £10,000 in allowable expenses, the taxable profit will be £40,000.

There are some rules governing what expenses limited company contractors can claim.

How Brexit Will Affect Contractors
Editor | 12 February 2019
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Brexit day is fast approaching and there is little certainty over how the negotiations will turn out.

Whatever happens, Brexit is likely to impact contractors in the UK. There may be some benefits in the short and long term, but many contractors are also likely to face some restrictions on their work.

In this blog post, we investigate the most likely Brexit outcomes and how they will affect contractors in the UK.

FSB Backs Review on 2019 Loan Charge

The Federation of Small Businesses (FSB) has come out in support of a review on the ‘unfair’ application of the 2019 Loan Charge.

Earlier this month, Sir Ed Davey successfully tabled and passed an amendment calling on the government to review the retrospective contractor charge before March 31st.

Announced at Budget 2016, the Loan Charge applies to any disguised remuneration loans that are still outstanding on 5 April 2019. 

Not everyone is a self-assessment early bird! But don’t stick your head in the sand, it’s not too late to get help with your self-assessment

The deadline for submitting your online self-assessment tax return and paying any tax due is 31st January 2019.  This is only just over three weeks away….but don’t panic!! 

Accountants are being booked up quickly as time runs out but at Umbrella Accountants, we always plan for the last-minute rush!  We have capacity to help you with your self-assessment – provided you don’t leave it until the very last minute!! Plus, if you quote ‘2019SA’ we will give you a 25% discount off the current fee!

If you miss the deadline by up to three months, then you will get an automatic penalty of £100. You could have to pay more if it is later than three months or if you pay the tax bill late.

So, what do you need to do to avoid the last-minute stress and heartache?  Here are our top tips.

A New Contractor’s Guide to Getting Paid in 2019
Editor | 26 November 2018
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Is your New Year’s Resolution to start working for yourself? You aren’t alone.

January is one of the busiest times for new company registrations as skilled workers target the money and freedom that can come with contracting.

But setting up isn’t easy. There are a lot of things to think about and if you plan your contracting journey properly now, you can save yourself several headaches down the way.

The Construction Industry’s New VAT Headache
Editor | 13 November 2018
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The Chancellor’s most recent Budget contained new measures to combat VAT avoidance by companies in the UK.

As part of the Treasury’s strategy to combat ‘missing trader’ VAT fraud, contractors in the construction industry will have to grapple with confusing changes to the VAT system that could affect their cashflow.

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