hmrc Articles

Landlords and the self-employed: the way you report income is changing. Everything you need to know about Making Tax Digital for Income Tax Self-Assessment (MTD ITSA)

Currently landlords and the self-employed submit an annual tax return to HMRC.

A new system is taking over in 2024. Making Tax Digital for Income Tax Self-Assessment (MTD ITSA) will mean more frequent submissions to HMRC. We’ve outlined the plans below.  Read on to learn if you’ll be affected.

Government opens umbrella working consultation

Contractors and agencies are being encouraged to share their views in a new consultation on umbrella working.

Umbrella companies support the flexible labour market by providing employment services for temporary workers.

New tax avoidance risk tool for umbrella contractors
marketing | 25 November 2021
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HMRC has launched a new tool to help contractors assess whether thei

National Insurance Tax Increase
marketing | 10 September 2021
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The tax increase has been created by the Government to combat the NHS backlog. It will also fund social care initiatives, such as care home costs and disease prevention.

From April 2022, National Insurances contributions will rise by 1.25% for employees and the self-employed who earn over the minimum threshold. Employers NI contributions will also be increased by 1.25%.

The increase to NI contributions will only last 1 year, with rates returning to the current level in April 2023. However, the 1.25% tax is here to stay and will be known as the ‘Health and Social Care Levy’ from 2023.

Reporting a non-compliant umbrella company

Most umbrella companies meet all tax and labour laws and have nothing but good intentions when it comes to looking after their employees.

Unfortunately, whether it’s through inability or corruption, some umbrellas don’t meet the standards that employees expect of them.

If you suspect that an umbrella company is acting illegally or unethically, you should report them. We explain why and how you can do this below.

Self-Assessments: late payment fines still apply, even when delaying your filing

HMRC have moved the deadline for online self-assessment filings from 31st January to 28th February 2022.

marketing | 10 December 2021
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New figures show that HMRC pays most of its temporary workers through umbrella companies.

However, the UK tax authority has denied that it has a partial outside-IR35 hiring ban in place.

HMRC’s accounts, which run to the end of March 2021, show that the taxman engaged 403 temporary workers in one year. Of this number, only 15 were classed as ‘inside IR35’, which means they were operating through a limited company, but paying tax and National Insurance contributions like an employee.

Sky Sports Presenter Hit with £281,000 IR35 Bill
marketing | 12 November 2021
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A court has ruled that former Sky Sports darts presenter Dave Clark owes HMRC more than £281,000 in tax after he lost an IR35 case appeal.

55-year-old Clark, who suffers with Parkinson’s disease, is the latest in a series of TV and radio personalities to find himself under investigation for suspected breaches of IR35 rules.

Do you need to complete a Self Assessment Tax Return for the 2020/2021 tax year?

How do you know if you need to complete a tax return?

The tax year is from 6 April to 5 April the following year. You’ll need to send a tax return if in the last tax year:

CIS Workers: Get Your Refund Back Fast With Umbrella.co.uk
marketing | 27 April 2021
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If you’re a sub-contractor working within the Construction Industry Scheme (CIS), you can get your annual tax refund back faster with Umbrella.co.uk. The average CIS rebate is around £2,000, but you can claim back even more with our tax experts.

Whatever you’ve got planned this summer - whether it’s a much-needed holiday, home or garden improvements or a real treat for your friends or family - make sure you’ve got the cash when you need it.

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