Contractors Articles

Private Sector IR35 Could Cost Contractors £14,000
marketing | 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.

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.

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. 

Six tax changes contractors need to know about in 2018
marketing | 8 January 2018
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For many contractors, the Christmas break finished as quickly as it started. A whirlwind few days of stressed-out travelling and mince pie gorging is all that your average contractor can expect before its back to work.

But the New Year period does offer some space for quiet reflection.

Many contractors will have set New Year’s Resolutions and many of these will have centred on money. 

Save money on car and van insurance with a dash cam
marketing | 4 December 2017
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Looking for a Christmas present for yourself? How about one that will save you money for years to come – and help you stay out of legal scrapes.

Contractors spend a great deal of their time on the road. And although you can often claim tax back on travel expenses – the sheer number of miles you get through each year can push up the price of your insurance premiums.

Anything that can bring down these premiums is most welcome and that’s where a dash cam can be your best friend. 

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.

Construction: Calls to Action on Poor Payment
marketing | 7 March 2018
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In the wake of Carillion’s collapse, construction industry chiefs have called for action to tackle bad payment practices.

Mark Castle, chairman of Build UK, spoke to Construction News about the need for “consequences” for bad payers, calling for more transparency to expose the industry’s worst offenders.

“When you have companies that have poor payment practices there has to be consequences for those companies, particularly when it comes to winning work,” he said.

There are troubling signals for contractors in the construction industry as Carillion is forced into liquidation and sector output dips dramatically. Contributing £90 billion to the economy each year, the construction sector is one of the largest in the UK. It is highly reliant on self-employed workers, with 800,000 of the 2.9 million people working in construction self-employed. Carillion, the second largest construction company in the UK, went into liquidation on Monday after the company’s banks refused
marketing | 16 January 2018
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There are troubling signals for contractors in the construction industry as Carillion is forced into liquidation and sector output dips dramatically.

Contributing £90 billion to the economy each year, the construction sector is one of the largest in the UK. It is highly reliant on self-employed workers, with 800,000 of the 2.9 million people working in construction self-employed.

Carillion, the second largest construction company in the UK, went into liquidation on Monday after the company’s banks refused to lend it more money. 

Dividend allowance cut confirmed: How much it will cost you
marketing | 11 December 2017
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The government’s second Finance Bill has been confirmed, meaning that the tax free dividend allowance will be cut from £5,000 to £2,000 from April 2018.

The cut could cost contractors up to £1,143 a year as the Chancellor continues with his raid on self-employed finances.

The dividend allowance cut was first mentioned in the Chancellor’s Spring Budget speech. Phillip Hammond said: “People should have choices about how they work, but those choices should not be driven primarily by differences in tax treatment.”

 Autumn Statement - 5 key takeaways for contractors
marketing | 23 November 2017
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In amongst the Britain’s Got Talent audition that the chancellor took part in yesterday were some announcements regarding the economy and some good news for contractors. We won’t repeat his numerous Christmas Cracker jokes but here’s the 5 key takeaways for contractors;

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