What to do if you were declared inside IR35 on April 6th 2017

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From the 6th April 2017, the responsibility for determining employment status shifted to the public sector employer, and no longer be up to the PSC contractor themselves. According to Contractor UK, confusion is growing among public sector contractors already engaged ‘in-contract.’ What happens if you’re declared inside IR35 by your public sector employer?  If you have been declared inside IR35 by… Read more »

New VAT rules for Limited Cost Traders

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New rules have been introduced from the 1st April 2017 removing the VAT saving that many small businesses previously obtained through the Flat Rate Scheme (FRS). All FRS users will now need to check, each time they complete a VAT return, if they are Limited Cost Traders. This is defined as one whose VAT inclusive expenditure on goods is either:… Read more »

Official IR35 Public Sector guidance published

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HMRC has published a series of documents outlining the forthcoming ‘off-payroll’ IR35 rules for contractors working for public sector organisations. An overview of the public sector IR35 changes: reform of intermediaries’ legislation From 6th April 2017 onwards the responsibility for determining whether or not a contract is ‘inside IR35’ will rest with the public sector client. If the contract is… Read more »

Small business may suffer from VAT abuse crackdown

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The Chartered Institute of Taxation (CIOT) has expressed concern that HMRC’s new measure to crackdown on abuse of the VAT Flat Rate Scheme (FRS) simplification may be ineffective, and bring unwelcome consequences for tax-compliant small businesses. The FRS, which enables small businesses to pay HMRC a fixed rate of VAT determined by their type of business rather than keep detailed… Read more »

UK business needs ‘ocean of answers’on Brexit

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Following Prime Minister Theresa May‘s recent announcement of the 12 objectives for Brexit negotiations has answered some questions but there remains an ocean of answers required by British business. The calculation we are trying to make is will businesses be better or worse off after Brexit? The answer to that will still be elusive in most British boardrooms. Certainty, control,… Read more »

IPSE warns public sector contractors to get their invoices in

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IPSE issued a warning to contractors working in the public sector to send their invoices before 6th March, and receive payments due before 5th April, as from the 6th April onwards payments could be subject to punitive new tax rules. Industry unprepared The Public sector organisations are supposed to undertake an assessment of a contractor’s IR35 status to determine the… Read more »

HMRC releases most optimistic Self-Assessment expense claims

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Glamorous holidays abroad, luxury watches and Friday nights out all feature in HMRCs latest list of the most outlandish expenses that customers tried to claim back on their 2014-15 Self-Assessment returns. HMRC is releasing the strangest expenses to make sure other customers don’t make similar claims: Holiday flights to the Caribbean Luxury watches as Christmas gifts for staff – from… Read more »

Making Tax Digital: Changes needed

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Making Tax Digital (MTD) will mark a fundamental change in the way that businesses interact with HMRC. The Government is proposing that businesses will be required to keep their accounting records in a prescribed digital format and submit quarterly updates to HMRC. These updates will be followed by an end of year reconciliation to ensure that the entire year’s activities… Read more »

My dog ate my tax returns’: Top excuses revealed

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If you put yourselves in a tax inspector’s shoes, the job can be one of unremitting frustration and tedium dealing with the pressures imposed by ludicrously complex rules and procedures, excessive workloads and recalcitrant taxpayers. (The exception to this, of course, is the pleasingly harmonious relationship HMRC staff enjoy with tax advisers). But just to show the people on the… Read more »

An introduction to Self-Assessment (limited company directors)

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Nearly all business owners have to file a Self-Assessment tax return, or tax return for short, every year. If you’re a director or other employee of a limited company, your tax return will show your salary and any dividends from the company. Your tax return will also show any other income you may have such as bank interest. It will also show any… Read more »