tax Articles

marketing | 20 October 2015
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In response to a petition asking the government to reconsider their proposed dividend tax hike, HM Treasury published a statement which, according to critics, was out of touch with the contracting industry and the needs of small businesses. 

The reply was published on the Parliament website where, once a petition reaches 10,000 signatures it must receive an official response from the government.

One contractor writing for IT Contracting dissected the government’s statement and explained paragraph by paragraph why it was “factually wrong” and removed from the realities of running a small business. 

marketing | 20 July 2015
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On Friday HMRC released the discussion document inviting contributions from the industry on how best to police the murky area of disguised employment.

At first glance the consultation seems conflicted proposing two equally unsatisfactory options and then asks for someone else to come up with the magic solution for this thorny issue.

Perhaps the most concerning element of the document can be found on page 8 where it is suggested that the engaging party rather than the PSC be held responsible for the deduction of TAX and NI exactly as they would for a normal employee. Based on how open to interpretation the current legislation is and how few successful cases HMRC bring against contractors it is surely unfair to expect the engager in these circumstances to make that decision and then enforce it onto a supplier that they want to keep on side.

marketing | 29 June 2015
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Dotted around the recent Queen’s Speech, eagle-eyed commentators picked out certain areas that could be of benefit to the UK’s contracting community. In particular the issue of taxation captured attention

marketing | 7 April 2015
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Happy and Tax aren’t often seen in the same sentence as each other but a New Tax Year is normally a happy event with increases to personal allowance bands meaning contractors can normally see a bit more in their take home pay each week.

On 3rd March 2015 the Office of Tax Simplification (OTS) issued its report headed “Employment Status Report”. The aim of the report was to tackle the complexities in deciding whether a person was employed or self-employed for tax purposes and the issues on employment rights particularly for the low paid.

marketing | 9 October 2015
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Self-employed contractors and umbrella PAYE employees had lots of reasons to cheer at this year’s party conferences.  We’ve highlighted some of the most important points that could affect our clients. 

As the party in government, what came out of the Conservative camp in Manchester will have the most immediate impact for our contractors.

David Cameron announced a relaxation of planning rules in an attempt to boost home ownership. Under the plans, builders would no longer be required to offer low-cost ‘affordable’ homes as part of new developments. More building work is always welcomed by construction contractors whether they are self-employed or PAYE.  

marketing | 10 July 2015
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Following George Osborne’s Budget speech there’s been a lot of conjecture and analysis of what the changes will mean for the contracting industry. Now that the dust has settled and the numbers have been crunched, there’s no getting away from the truth of the matter – it’s not good news, despite the excitement of Ian Duncan Smith. However, it’s certainly not all doom and gloom and changes to how contractors are taxed won’t diminish the growing demand for their skills.

marketing | 7 April 2015
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Please find below the key tax changes that came into effect on 6th April 2015.

Employee National Insurance Contributions (NIC) Threshold (rate above which your start paying at rate of 12%)

£153 to £155 pw (per week)

Or if monthly paid

£663 to £672 pm (per month)

 

marketing | 11 March 2015
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Only one week to go until the Chancellor, the Rt Hon George Osborne MP, delivers his  2015 budget.

The budget will be delivered to Parliament at 12.30pm on Wednesday, 18th March. Live coverage is on BBC2.

The good news for the average tax payer is that because it is an election year (Thursday 7th May) then the Conservative Party should be keen to spread the feel good factor and cut taxes in order to maximise votes!

There are numerous benefits and reasons that umbrella companies exist for contractors working in the UK and it is not just that they allow contractors to benefit from tax relief for travel and subsistence costs

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