hmrc Articles

marketing | 17 September 2019
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The controversial loan charge, which affects contractors who participated in ‘disguised remuneration’ schemes, could be scrapped after Chancellor Sajid Javid commissioned an official review into the tax.

The new review will conclude by mid-November to give taxpayers certainty ahead of the January Self Assessment deadline. It will be led by Amyas Morse, the former chief executive of the National Audit Office.

HMRC Accuses 1,500 GSK Contractors of IR35 Non-Compliance
marketing | 2 September 2019
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HMRC has sent a letter to around 1,500 GlaxoSmithKline contractors accusing them of being ‘disguised employees’ and ordering them to pay more tax under IR35 rules.

As the taxman ramps up the aggressive campaign against contractors, the letter was reportedly sent to contractors in different departments at the multinational pharmaceutical company.

HMRC’s letter says that in the 2018/19 tax year, their “view is that the contract between your PSC and GlaxoSmithKline (GSK) comes under the off-payroll working rules ‘IR35’.”

Don’t Forget Your July 31 Payment on Account
marketing | 22 July 2019
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If you pay taxes through HMRC’s Self Assessment system, you need to make sure you settle your second payment on account by the end of this month.

 

A payment on account is an advanced payment towards your tax bill, including income tax and Class 4 National Insurance if you’re self-employed.

 

HMRC Wins Case Over Contractor Loan Scheme
marketing | 4 April 2019
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HMRC has won a tribunal case against a contractor loan scheme promoted by Hyrax Resourcing Ltd.

Hyrax Resourcing will now be forced to disclose the details of 1,180 ‘high earners’ that use the scheme and help the tax authority claim back more than £40 million in unpaid taxes.

The scheme in question was a disguised remuneration tax avoidance scheme that paid users in loans so that they could avoid paying income tax and National Insurance contributions on their earnings.

 

Woolly Underwear and Other Expenses Rejected by HMRC
marketing | 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.

GSK Confusion is Just ‘Taste of Things to Come’
marketing | 4 September 2019
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A sense of panic and alarm spread rapidly through the wider contracting community when HMRC sent IR35 letters to more than a thousand GlaxoSmithKline (GSK) freelancers and contractors last week. But this is just a ‘taste of things to come’ when IR35 changes are extended to the private sector in April 2020, according to a contractor interest group.

HMRC’s ‘Crusade Against Contractors’ to Net £27.7m
marketing | 12 August 2019
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Investigations into the contractor employment status could generate close to £30m according to figures released by HMRC.

The data shows that HMRC believes it can generate an extra £27.7m before investigations are concluded. The figure refers to ‘tax under consideration,’ which is an estimate of what HMRC would lose if it didn’t investigate.

HMRC Pressed For IR35 CEST Tool Release Date
marketing | 3 July 2019
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HMRC is under pressure to say when the new improved IR35 ‘Check Employment Status for Tax’ (CEST) tool will be released, as stakeholders point out flaws with the current version.

 

The tax authority has confirmed that its CEST tool will undergo enhancements before IR35 reforms are extended to the private sector from April 2020.

 

But so far, little is known about what updates will be applied and when the new tool will be available.

 

Treasury: 2019 Loan Charge Will Go Ahead Despite Appeals
marketing | 4 April 2019
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The Treasury has confirmed that the 2019 Loan Charge will take effect this week, despite appeals from MPs, members of the House of Lords and Loan Charge campaigners.

HMRC released a last-minute statement on Wednesday, reminding Loan Scheme users that they have an obligation to pay the tax owed.

The statement urged users of disguised remuneration schemes to come forward and settle their debts by April 5. The tax authority also said that ‘flexible’ payment options are available to those that worry they will not be able to pay.

 

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.

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