hmrc Articles

IR35 is the biggest obstacle to hiring specialist talent in the UK
marketing | 26 April 2022
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A year after IR35 reforms were introduced in the UK, a new report suggests that the changes are restricting access to specialist contractors.

The report also found that the majority of contractors will only consider ‘outside IR35’ contracts, despite a glut of available ‘inside IR35’ contracts.

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.

Companies call on Treasury to delay National Insurance rise Umbrella.co.uk

Business groups have called on the Chancellor Rishi Sunak to delay a planned increase to National Insurance amid rising prices and a slowdown in recruitment activity.

Make UK, which represents 20,000 manufacturing firms in the UK, called the £12bn tax boost ‘illogical and ill-timed’. They argued that April’s 1.25 percentage point increase to the tax on employees and employers should wait until the economy is on a firmer footing.

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:

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