From April 2017, many small limited companies which have low annual costs will face a higher VAT liability if they use the Flat Rate Scheme (FRS). Here, we look at how the changes are likely to affect contractors.
Contractor News Updates
We typically publish site updates when important events take place (such as upcoming changes to legislation, Budget reports). You can also keep up-to-date with the latest contractor news updates by following us on:
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Pension auto-enrolment – how are contractors affected?
If you run a limited company, you may have received a pensions auto-enrolment reminder letter over the past few weeks. We asked a pensions expert which contractors are affected by the new rules.
Accountant urges contractors to put money aside for dividend tax hike
Although the new dividend tax regime started on 6th April 2016, it will be some time before company owners feel the effects on their take-home pay. Here, a leading accountant outlines the key dates contractors should prepare for to ensure they are not caught out by the tax hike.
Confirmation Statement to replace Annual Return from June 2016
On 30th June 2016, the Annual Return, which provides a snapshot of a limited company’s personnel and structure at a given moment in time, will be replaced by a Confirmation Statement. Here we look at what this requirement means for company owners, and how communications with Companies House will change as a result.
Employment Allowance restriction – another tax blow
The Employment Allowance reduces the National Insurance costs for most employers, including contractor limited companies. However, this is all set to change from April 2016 when many contractors will not longer be eligible to claim it.
Tax avoidance contractors face £200m bill after Tribunal ruling
Thousands of contractors face enormous tax bills after a Tribunal ruled that HMRC could retrospectively tax an Isle of Man based tax avoidance scheme, despite its structure being legal at the time of operation.
Four-fold tax attack on contractors – the basics
As a result of announcements made during the last Budget, contractors will have to potentially negotiate four pieces of new tax legislation. Here we set out the main aims of each tax proposal, stripped of as much jargon as possible.
2016 dividend tax hit likely to be worse than many expected
Limited company contractors will already be aware that dividends are set to be taxed more heavily from April 2016, however details of the proposed tax hike were ambiguous when first announced during the summer Budget. It now appears that the tax hit may be worse than many first thought.
HMRC demands more information than ever about agency contractors
New Government rules will require recruitment agencies to provide more information than ever to HMRC about the contractors on their books, including how much they’re paid. We asked an expert what this means in practice, and if there is a link between the new rules and IR35.
New HMRC plan to outlaw umbrella travel expenses abuse
HMRC has outlined its plans to outlaw the exploitation of travel and subsistence rules via the use of overarching contracts of employment, which have been used by a minority of umbrella firms to avoid millions in taxes, whilst also distorting the market and undercutting their ethical rivals.
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