A study completed as part of a broader investigation into the ‘gig economy’ could end up costing you up to £1,000 in National Insurance Contributions (NICs) if you work more than one job.

A survey, which was commissioned by the government, has concluded by recommending wholesale reform of the NIC system for employed and self-employed people with multiple jobs.

If applied, the recommendations would see NI applied on a ‘per person basis’, which would effectively mean a tax increase of up to £19 for some multiple job workers (nearly £1,000 per year).

Completed by the Resolution Foundation, the study represents part of a broader examination into tax and employment regulations in the modern era.

It found that many of the assumptions underpinning the so-called ‘gig economy’ were false. 

A landmark court ruling has found that Uber drivers are not self-employed contractors and can be classed as employees.

The employment tribunal ruled that the taxi app drivers are entitled to minimum wage and other benefits.

It was the case of the decade for employment law – pitting the popular lift hailing app company against one of Britain’s most powerful unions in a tribunal case that threatens to shatter the so-called ‘gig economy.’

The ruling isn’t just important for Uber, its drivers and its customers - it could also have more far reaching consequences for other self-employed contractors and their employers.

In this blog post we take a closer look at the case and evaluate some of the potential consequences of the ruling.

Editor | 14 October 2016
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HMRC has narrowly lost a First Tier Tribunal (FTT) case, in which the tax authority tried to make an employee pay outstanding PAYE liability on a bonus paid just before the company went into liquidation. And the case could have important consequences for some owner managers.
Unless it is appealed by HMRC, the tribunal could mean that more small business owner managers that are about to go into liquidation could make payments to themselves without paying all the tax liability to the crown.

Theresa May had a busy time at the Conservative party conference last week, and hidden among some of the bigger policy announcements relating to Brexit and education reforms was some rare good news for people in ‘non-traditional’ employment.

Editor | 19 September 2016
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A month after HMRC told Deliveroo that is needs to pay its drivers the minimum wage, two more legal cases further highlight the issue of modern day payment practices. 

Pickup trucks are the backbone of many successful businesses around the UK, with the added bonuses of mean styling and toweringly lofty driving positions, the latter having become increasingly desirable for private motorists too. To date, only the Volkswagen Amarok has flirted with taking the pickup truck segment upmarket, but an announcement from Mercedes-Benz means that construction businesses and tradespeople will be able to combine the best of all worlds when its new X-Class takes to the road. It’ll be available in two distinct versions, the choice coming down to how ‘hands-on’ one’s job role is.

Editor | 31 October 2016
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A new feature in FreeAgent will now calculate your submissions and tax liability for you on a monthly basis.

Here's how to use it

Go on the work tab and create a new project.

A poll carried out by leading accountancy software provider FreeAgent has found that nearly a third (30 per cent) of self-employed people say they work more than 48 hours per week.

Editor | 7 October 2016
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The presence of vans on our roads reached an all-time peak last year, the DfT’s Road Use Statistics Great Britain 2016 report has identified, the 45 billion miles covered by van drivers in 2015 equating to a 38% rise from 2000 and accounting for 14% of all road use. Van traffic has risen by 12% over the last two years compared to car traffic which has increased by just 4%. Interestingly, HGV traffic has seen the smallest growth at 3%, having consistently reduced since the so-called ‘economic downturn’ several years ago.

The Office of Tax Simplification has become the latest in a long line of organisations to criticise the government’s new IR35 proposals, which relate to contractors in the public sector.

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