private sector Articles

IR35 Decision Delay After Budget Cancelled
marketing | 4 November 2019
/ / / /

The government has scrapped plans to hold a budget in November after MPs voted for a general election in December.

The delay creates more uncertainty about whether planned IR35 reforms will take effect in April 2020.

The Treasury has confirmed that the December 12 election will mean that chancellor Sajid Javid will not deliver a budget that was scheduled for November 6.

Banks to Block IR35 Contractors After IR35 Changes
marketing | 7 October 2019
/ / / /

UK banks Barclays and Lloyds appear to have followed the example set by HSBC and others by blocking the engagement of limited company contractors when private sector IR35 reforms take effect.

A letter sent by Barclays to contractors suggests that the bank will stop using personal service company (PSC) contractors and tax all contractors in the same way as salaried employees.

One-in-Five Sole Traders Needlessly Preparing for IR35 Reforms

New research indicates that one-in-five UK sole traders are preparing for the upcoming changes to off-payroll working rules in the private sector, despite the fact that the legislation will not affect them.

Completed by the Freelancer & Contractor Services Association (FCSA) professional body and cloud accounting software provider FreeAgent, the research found that 18% of sole traders were making preparations for the new rules when they would not affect their business type.

marketing | 12 March 2019
/ / / / /

Large and medium sized private sector organisations have just over a year left to prepare for important changes to IR35 legislation.

When similar changes were introduced in the public sector in April 2017, many organisations were woefully underprepared. In the most serious cases, public sector organisations made costly errors and saw major projects delayed.

Getting ready for April 2020 requires effective leadership and co-operation across departments and business areas.

In this blog post, we will provide a brief introduction to the changes before detailing what different teams can do to prepare.

 

What expenses can limited company contractors claim

If you contract through a limited company, there are certain expenses that you can claim against your income to reduce your tax liability.

If your limited company makes £50,000 and you claim back £10,000 in allowable expenses, the taxable profit will be £40,000.

There are some rules governing what expenses limited company contractors can claim.

IR35 Rules Won’t Automatically be Applied Retrospectively

With around six months to go until public sector IR35 reforms take effect in the private sector, HMRC has clarified how it will enforce the regulations.

The tax authority has announced that the new rules will only be applied retrospectively in cases where it suspects fraud or criminal activity.

Finance Bill Confirms Private Sector IR35 Details
marketing | 15 July 2019
/ / /

The Treasury has published the Finance Bill 2019-20 , which confirms a number of important details about the upcoming IR35 reforms in the private sector.

 

Ignoring some of the recent calls for the reforms to be delayed, the bill confirms that off-payroll rules will be extended to the private sector from 6 April 2020.

 

In line with the changes in the public sector, private sector clients will be responsible for assessing a contractor’s IR35 status. Previously, this responsibility lay with the contractor.

 

Majority of Public Sector Contractors Ruled Inside IR35
marketing | 20 May 2019
/ / / /

Ahead of reforms to private sector IR35 rules, new research shows that several public sector organisations are, in the majority of cases, judging contractors to be inside IR35.

Since 2017, public bodies have been responsible for deciding whether a contractor is truly self-employed or whether they should be taxed as if they were an employee of the firm.

The rules apply to limited company contractors who, before the rule change, were responsible for judging their own IR35 status.

From April 2020, the same reforms will be introduced in the private sector, so that organisations with 50 or more employees will be responsible for judging a contractor’s IR35 status.

HMRC Launches Private Sector IR35 Consultation
marketing | 6 March 2019
/ / / / /

HMRC has launched a fresh consultation on changes to off-payroll Intermediaries Legislation (IR35), due to take effect in the private sector from April 2020.

The changes would see reforms introduced in the public sector in 2017 extended to the private sector.

The change will affect contractors that operate through an intermediary like a limited company or personal service company (PSC).

Instead of judging their own IR35 status, the private sector organisation that engages the contract will make this decision. It could mean that more contractors are deemed ‘inside IR35’ and liable to  pay income tax and National Insurance contributions.

Private Sector IR35 Reforms: What It Means for You
marketing | 30 October 2018
/ / / /

The Treasury released new guidance on off-payroll working (IR35) in the private sector yesterday, following the Chancellor’s Budget speech.

Following a consultation on the rules, some commentators expected IR35 reforms to take effect from next year. But the policy paper reveals that the changes will be introduced in April 2020, giving businesses more time to prepare for the reforms

We’ve combed through the policy document, picking out the key points so you can understand how the changes will affect you.

Pages