tax Articles

Christmas Plans: Don’t Forget Your Self-Assessment
marketing | 6 December 2018
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As Christmas draws closer, many contractors will be finalising their plans for the festive season.

You know who is in charge of wrapping presents, what time you’re going to travel to the in-laws and who’s cooking the turkey. But you shouldn’t forget about the tax return deadline in amongst all the merriment.

After all, you only have until 31 January to complete and pay your Self-Assessment.

Missed the First Loan Charge Settlement Deadline? Don’t Despair
marketing | 3 October 2018
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HMRC is targeting contractors that have participated in disguised remuneration ‘loan schemes,’ and time is running out to avoid an enormous tax bill next year. 

If affected contractors fail to make a settlement with HMRC by 5 April 2019, any outstanding ‘loan’ tax payments could be tacked onto their 2018/19 tax bill.

Unfortunately, the first settlement deadline has already passed. HMRC had instructed contractors to register their interest in settling and fill out relevant documentation before 30 September.

 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;

AUTUMN STATEMENT REVIEW

The Chancellor’s first Autumn Statement contained some pretty eye-watering sums. The estimated cost of Brexit at £58.7bn and an extra £122bn of borrowing in this parliament are two of the biggest.

There were some positive numbers though. £26bn to fund investment in housing, transport, digital technology and research and development will prove valuable to contractors in some of these industries.

Others, meanwhile, will be left counting the cost of tax increases. Here are seven of the most important points for contractors and limited company owners.

Umbrella.co.uk Budget Briefing
marketing | 21 March 2016
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The Chancellors fourth Budget in 12 months arrived on Wednesday and it confirmed a number of policy changes that we already knew were going to arrive. Restrictions on Travel and Subsistence tax relief for IR35 contractors and changes to the dividend tax will take effect as planned in April.

The most significant new announcement will be of concern to contractors working through a personal service company (PSC) in the public sector.

An HMRC policy document reveals that from April 2017, public sector organisations will be responsible for enforcing IR35. This marks a significant change from the current system, whereby the PSC or agency judges whether a contractor is caught out by IR35.

Effectively, this means that many more public sector contractors will fall under the remit of IR35 legislation and will receive less take home pay as a result. This change is scheduled to take effect in April 2017 following a consultation. 

Making Tax Digital deadline: Time is running out for contractors
marketing | 4 October 2018
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Contractors are running out of time to comply with HMRC’s new Making Tax Digital (MTD) initiative, which requires them to keep digital accounting records and use approved software to submit tax information to HMRC.

The first MTD deadline, for limited company contractors that earn over the £85,000 VAT threshold, is just a little over six months away.

From April 2019, these contractors will no longer be able to submit their VAT return manually with HMRC’s ‘direct tools’. Instead they will have to use HMRC-compliant software like FreeAgent or Xero to keep digital records and automatically submit their VAT returns. 

 

HMRC Claims Fraudster’s £70,000 Poker Win
marketing | 23 August 2018
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A convicted fraudster from Preston has been ordered to pay £70,000 that he won in a Manchester poker game to the tax office.

Adam Lulat was jailed for 28 months in 2015 for his involvement in a £40 million money laundering scam and VAT fraud.

 

The new Tax Evasion Legislation for Recruitment Agencies
To prevent tax evasion, the new tax law makes recruiters criminally responsible.
 
Following on from recent tax scandals, including the Panama Papers and various loan write-off schemes, a new corporate “failure to prevent” offence is being introduced from 30th September with a severe penalty regime that should make all agencies sit up and take note.
 
With unlimited fines and the possibility of a criminal record a clear target is being painted on the backs of any part of the staffing supply chain that isn’t compliant. Of vital importance is the fact that an agency can be convicted even if no intent is established and the agency has not benefited financially from the arrangement.
 
 
 
 

 

Midnight on July 31 is the deadline for making your second ‘payment on account’ to HMRC.
If you are self-employed or you own a business and you think that you have to make an advance ‘payment on account’ for this current tax year then this is your last chance to pay before you receive a fine.

HMRC under pressure over Google tax deal

The government has come under increasing scrutiny this week after a tax agreement reached with Google was labelled a “major success” by George Osborne, but dismissed as a raw deal by almost everybody else.

The £130 million deal, which covered ten years of trading, was branded a “sweetheart deal” by the Labour finance minister, while on David Cameron’s government benches the business minister Anna Soubry admitted that it did not appear to be an “awful lot of money.” 

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