Another Dividend Tax Grab This Autumn?

Chancellor Philip Hammond has been urged not to ‘clobber’ limited company contractors and other businesses with another dividend tax grab this autumn.

The Federation of Small Businesses (FSB) said it was concerned that the Treasury might once again cut the tax-free dividend allowance for limited company directors, to collect an extra £1.3bn in tax receipts. 

The Chancellor has already reduced the allowance from £5,000 to £2,000, a policy which took effect this April.

Now there is concern that Philip Hammond will announce a fresh raid on the dividend tax-free allowance in this year’s Autumn Statement.

HMRC Claims Fraudster’s £70,000 Poker Win
Editor | 23 August 2018
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A convicted fraudster from Preston has been ordered to pay £70,000 that he won in a Manchester poker game to the tax office.

Adam Lulat was jailed for 28 months in 2015 for his involvement in a £40 million money laundering scam and VAT fraud.

 

Care providers urged to consult HMRC on sleep-in shifts

HMRC is offering to help social care providers who may not have paid workers a National Minimum Wage  for sleep-in shifts.

Underpaying employers in the social care sector can avoid fines of up to £20,000 per worker if they join the Government’s social care compliance scheme (SCCS).

The move comes after the court of appeal reversed a ruling on payment for sleep-in shifts last month. 

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.

Take Home Pay Umbrella Companies
Editor | 29 August 2018
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The government has issued a warning about agencies and umbrella companies that claim to be able to help you save on tax and boost your take home pay.

Although everything may look legitimate and above board, these companies actually run tax avoidance schemes that could land you with a bigger tax bill and penalties, HMRC said.

The ‘too good to be true’ schemes work in different ways, but operators usually promise to reduce your tax liability and help you keep more of your income.

Higher rate contractors: Claim up to £400 in pension tax relief. Don't Miss Out!

Higher and additional rate contractors could be missing out on a significant tax refund because they aren’t claiming back the full tax relief on their pension contributions.

Richard Perch, who heads up the social work and healthcare division at Umbrella.co.uk said: “We think that this is the biggest tax relief that goes unclaimed by higher and additional rate contractors."

HMRC Payment on Account Due 31 July
Editor | 30 July 2018
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Self-employed contractors have just a few days left to pay their payment on account.

The second annual tax installment is due on the 31 July and is payable by anyone who is self-employed, or anyone that has substantial income not paid by an employer or pension provider.

Most contractors will have already paid the bulk of their income tax before the first January 31 deadline. The payment on account system means that contractors pay an advance on what the taxman thinks they will owe for the current tax year.

The July 31 payment will reduce what you have to pay next year.
 

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.

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