The Government implemented new ‘off-payroll’ measures to enforce IR35 within the public sector from April 2017 onwards. Rather than being a revenue-generating success for HMRC, the implementation of the new rules has been a disaster. Together with expert opinion, we look at what damage has been done as a result of the reforms.
Contractor News Updates
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The ‘perks’ contractors have to pay for, but employees take for granted
With the tax differential between limited company owners and traditional workers substantially reduced due to successive dividend tax hikes, why don’t policymakers take into account the extra costs contractors have to bear compared to employees?
April 2017 – higher VAT liabilities for ‘limited cost traders’ explained
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.
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.
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