Category Archives: Contracting News

Autumn Statement 2014

The government’s intention to carry out a review of overarching contracts of employment, as announced in the Autumn Statement 2014, is of most relevance to umbrella companies and contractors. A discussion paper will be published in time to inform possible action in the 2015 Budget. The reason given for the review in the Autumn Statement document is to restrict the claiming of tax relief for home to work travel expenses. In his speech however, the Chancellor emphasised that it was to ensure umbrella companies were not depriving people of basic employment rights like the minimum wage. (AS 2.147).

Anthony Thomas, chairman of the Low Income Tax Reform Group (LITRG) voiced disappointment at the lack of help in the Autumn Statement for taxpayers, especially the self-employed, to pay their taxes according to a flexible timetable. LITRG argues that “bunching tax payments into such a lump sum can cause problems for taxpayers” and that flexibility “might enable more taxpayers to comply with their tax payment obligations, benefiting both them and the Exchequer.”  Read more . . . 

Other Autumn Statement 2014 measures of potential interest are outlined below.

Eligibility for Tax Credits

Eligibility conditions for those claiming tax credits on the basis of self-employment will be tightened. The government says this is to prevent abuse of the system while allowing HMRC to continue to support those who are genuinely self-employed. A new test will be introduced to ensure work undertaken is “genuine and effective” and a requirement that anyone claiming Working Tax Credit as self-employed registers with HMRC and provides their Unique Tax Reference (AS 1.232).

Employee Benefits and Expenses

From April 2015, ‘trivial benefits’ i.e. those worth under £50 will be statutorily exempt. At present, if an employer feels a benefit is trivial, they must request HMRC exemption from disclosing it. The £50 threshold will help to reduce the time and money firms have to spend on administering employee expenses and benefits (AS 2.136)

The government will carry out full public consultation on the framework for new rules for tax relief on travel and subsistence payments, announced in Budget 2014 in response to the Office for Tax Simplification’s (OTS) review of the rules for tax relief on employee benefits and expenses (AS 2.141)

As part of its reform of the rules for employee benefits and expenses, the government will stop tax relief from being claimed on reimbursed business expenses when they are paid in conjunction with a salary sacrifice scheme (AS 1.251).

 Restricting Unfair Tax Advantages on Incorporation

The government will restrict the Corporation Tax relief a company may obtain for the acquisition of the reputation and customer relationships associated with a business (‘goodwill’) when the business is acquired from a “related individual or partnership.” (AS 2.146)

The change came into effect from 3 December. Louis Baker, head of professional practices at national audit, tax and advisory firm Crowe Clark Whitehill, quoted in the Law Society Gazette, said “This will end of the flow of firms converting to limited company status solely for tax mitigation purposes. From now on firms will choose their ownership structure and entity on purely commercial and cultural grounds. Many firms will reflect that the partnership/LLP model remains the right vehicle for their firm, and there will be far fewer converting to limited company status than has been the case in recent years.” See full article here.

On the other hand, ATT’s president Natalie Miller thought the measure did nothing to address the difficulty of valuing goodwill and “one side-effect (of the new measure) may be that more businesses are created as limited companies from the outset or transferred into limited companies at an earlier stage” running “against the principle supported by the OTS that businesses should be structured according to their commercial needs rather than any particular tax treatment.”

 Tax Avoidance and Evasion Measures

The ‘Diverted Profits Tax’ will come into force from April 1st 2015 at a rate of 25% Also known as the ‘Google Tax’, this new tax has been designed to “counter the use of aggressive tax planning techniques used by multinational enterprise to divert profits from the UK”. (AS 2.142)

The government will introduce legislation to give the UK the power to implement the OECD model for country-by-country reporting. The new rules will require multinational enterprises to provide high level information to HMRC on their global allocation of profits and taxes paid, as well as indicators of economic activity in a country.

The government will introduce legislation to strengthen the Disclosure of Tax Avoidance Scheme (DOTAS) regime and increase HMRC resources involved in administering and enforcing the DOTAS regime by creating a new taskforce (AS 2.161-2.162)

The  Chartered Institute of Taxation’s (CIOT) expressed support for change to DOTAS but preferred to see it recast it as a targeted regime dealing specifically with tax avoidance.

CIOT was concerned that the new proposals risked eroding cooperation between HMRC and advisers and that, as a result the DOTAS regime would not operate effectively. CIOT  was particularly concerned with the changes being proposed to the ‘hallmarks’ and ‘grandfathering’ provisions, which would mean that schemes previously excluded from DOTAS would now be included. “We think that it is essential that the system should contain sufficient protection for the vast majority of advisers who comply with the rules, and that it should not be cast too widely so as to catch straightforward tax planning arrangements.”

The government will consult on action to take against ‘serial’ avoiders (AS 2.158) and on whether and how to introduce penalties where the GAAR applies (AS 2.159).

Civil penalties for offshore tax evasion will be enhanced (AS 2.155).

The government will consult on a proposal to give HMRC a new power so it can achieve early resolution and closure of one or more aspects of a tax enquiry, while “leaving the other aspects open” (AS 2.169)

Business Funding

The government will extend Funding for Lending to January 2016. The FLS will be further focussed on SMEs and will complement various other initiatives in train to support credit to SMEs, including British Business Bank programmes to make finance markets work better for SMEs and proposals in the Small Business, Enterprise and Employment Bill to improve access to SME credit information. Funding for the Enterprise Finance Guarantee and an expansion of Enterprise Capital Funds will unlock up to £1 billion of finance for smaller businesses (AS 1.38).

Malcolm Small, IoD senior financial services policy adviser, welcomed this news but could see a reduction in business lending as a result new taxes imposed on banks.

 Exports

Acknowledging the UK’s disappointing performance on exports, the Autumn Statement provides a £20 million package of support for first time exporters. Alongside this, UK Export Finance will modernise and digitalise its processes to make them more accessible to SMEs (AS 1.179).

In addition, the FCO will deliver a £25 million ‘surge for growth’ programme to support projects and trade agreements across the world, including £22 million for emerging and developing economies on projects with the potential to increase UK exports.  (AS 1.179 – 1.180)

IoD’s head of Europe & trade policy, Allie Rennison, welcomed additional resources for the digitalisation of export support, describing it as “crucial”. “Nearly half of IoD members have used social media and online networking to identify business opportunities abroad, indicating that digital resources are important tools for would-be exporters”. But, she adds “there is no substitute for tax relief when it comes to offsetting costs to get businesses exporting, and the IoD hopes this will be an important consideration for this and the next government.” For full article click here.

R&D

The government will increase the rate of the of the ‘above the line’ R&D tax credit rates from 10% to 11% and will increase the rate of the SME scheme from 225% to 230%, from 1 April 2015 (AS 2.97)

The government will restrict qualifying expenditure for R&D tax credits so that the costs of materials incorporated in products that are sold are not eligible, with effect from 1 April 2015. (AS 2.98)

The government will introduce an advanced assurance scheme for small businesses making their first claim and develop new guidance for R&D tax credits. The government will launch a consultation on the issues faced by smaller businesses when claiming R&D tax credits in January 2015. (AS 2.99).

David O’Keeffe, chairman of the CIOT working group on R&D tax relief, welcomed the news of increased tax relief rates and the advanced assurance scheme “the introduction of this new service, alongside new guidance and the promise of a consultation on the issues faced by smaller businesses, should make it a lot easier for companies to claim R&D tax relief”. The plan to restrict relief for the costs of materials incorporated in products that are sold was not so welcome however. “It will be interesting to see just what the Government has in mind here and why.”

 Science and Innovation

£5.9 billion has been allocated over the next Parliament (AS 2.220); £3 billion for individual research projects, world-class laboratories and international subscriptions and £2.9 billion for scientific Grand Challenges including:

  • £113m to build a new Cognitive Computing Research Centre in Hartree aimed at giving non-computer specialists insights from big data in order to enhance and design products, services and manufacturing processes.
  • £235 million investment in the Sir Henry Royce Institute for advanced materials which will be based at Manchester University
  • A £20 million Centre for Ageing Science and Innovation in Newcastle, utilising academic research to tackle many of the challenges faced by an ageing population and, in doing so, ensuring optimum health and quality of life whilst reducing health and social care costs
  • £95m investment in European Space Agency programmes to take the operational lead on the first European Rover mission to Mars which will search for life, past and present.

The Institute of Directors (IoD) head of technology policy, Jimmy McLoughlin, said “Britain has long been a leader in the space sector, and funding the first European rover mission will pay for itself far into the future when the information and technology acquired makes regular missions to Mars possible.“

 

 

 

 

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More Job Opportunities But Don’t Pop The Champagne Corks Yet

According to a report in the FT  UK graduate job opportunities are rising, leading to a return to pre-crisis (2007) levels of university leavers employment opportunities. A survey of the UK’s top 100 companies including Rolls Royce, Sainsbury’s and the BBC says graduate vacancies will see their largest annual growth since 2009. Martin Birchall, Managing Director of High Fliers Research, said that the prospects for graduates leaving university this year are the best they’ve been since the start of the recession. There will also be a rise in the number of paid internships at top companies with 11,000 placements available for first and second year students. Government ministers have claimed that the rising vacancies are a sign of confidence in the growing UK economy.

The terrific increase in vacancies in the City of London figures for November and December provided a buoyant end to 2013. While good news, Mark Cameron, Astbury Marsden’s Chief Operating Officer said “There is no popping of champagne corks yet. What drives a lot of the volume of recruitment in the City is the investment banks and they’ve still got some business challenges to work through before they consider growing.” The growth is mainly coming from smaller and mid-cap financial companies. The strong end to the year does not hide the fact that less jobs were created in 2013 (27,915) than in 2012 (35,115). It merely suggests a slowdown in the contraction.

The UK’s largest recruiters are all experiencing a rise in gross profits. Both Hays and Robert Walters reported strong growth in the fourth quarter of 2013 in permanent contracts. These optimistic green shoots in the recruitment sector need to be tempered with the knowledge that the European economy is still sluggish.

There may well be a technological disrupter on the horizon for the recruitment market that could result in a reduction of profits. Recruitment software company Jobbio has just opened offices in Dublin and London. According to TechCentral

The website is free to join for candidates and companies, who can post as many open vacancies as they like. The service’s revenue model is based on charging companies on a ‘pay per hire’ basis with prices starting at €2.

Candidate features include personalised ‘job streams’ where relevant position are displayed to candidates similar to Facebook news feeds and ‘live bios’ which remove the need for CVs and can be browsed anonymously by recruiters.

UK technology investors MXC Capital are backing Jobbio. Will they succeed? Wait and see.

In the meantime if you need a visa to work in IT, Engineering, or Finance then Commonwealth Contractors may well be able to help.

To find out more about our solutions call now on 0800 294 4388 or Send us some details now and we will get right back to you!

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Thames Island Airport Plan | Boris Island

As Boris Johnson enjoyed an aerial tour over Hong Kong’s Chek Lap Kok airport he was showing us that his plan for a Thames Island airport also known as Boris Island is structurally achievable. Chek Lap Kok airport was built on land reclaimed from the sea and although only completed in 1998 is the world’s busiest cargo airport and not quite in the top 10 for passenger numbers. It was planned and designed by British companies – the architectural practice of Lord Foster, engineering group Mott MacDonald and structural engineers Arup.

In a report in the FT, while still in Hong Kong, Boris Johnson said ” It is hugely impressive yet also devastatingly depressing when you consider that, as long as the vision for aviation in the UK remains steadfastly wedded to Heathrow or make-do solutions, we will not be able to access many of the mega-airports opening here or in the many other dynamic economies building new airfields around the globe.”

Lord Foster’s practice has already produced designs for an inner estuary airport on an artificial island on the Thames. The mayor’s most recent proposal is for a giant outer estuary airport on the Isle of Grain. The proposal includes an international railway station which would take passengers to Waterloo in 26 minutes, infrastructure improvements such as extending Crossrail and widening the M25 an extra lane in each direction for 36 miles. The entire project would cost around £65 billion and open in 2029.

Sir Howard Davies was appointed by David Cameron, the prime minister, to head up an independent Airports Commission to review the options for the expansion of UK airport capacity. An interim report is due in December this year and will list a handful of possible runway sites to be studied in more detail from more than 50 submissions. The final report will not be published till after the 2015 general election.

Sir Howard Davies has said that the provisional conclusion is that we will need some net additional runway capacity in the southeast of England in the coming decades and that the UK needs a hub airport where passengers transfer from short-haul aircraft to wide-body jets to ensure that airlines can profitably operate a broad range of long-haul routes. In an FT report he said “The big question looking forward is how big a hub do you need and how will the aviation market develop?”

Some of the options under consideration are:

  • Building new runways at Heathrow and Gatwick.
  • Building new runways at Gatwick and Stanstead but not Heathrow.
  • Rebuilding Standstead and turning it into a hub.
  • Building a new four runway hub on the Thames estuary.

With Heathrow, Gatwick and Stansted, there are already problems such as being too close to built-up areas or requiring aircraft to fly low over London. The expansion of Heathrow would  require the demolition of parts of West London and an increase in noise and atmospheric pollution across the whole city. Conservationists are not keen on the proposal for the Thames estuary and if it went ahead then Heathrow is likely to close.

Will Boris Island ever come to pass? It may well do. The Airport Commission may favour his bolder project simply because it is so hard to predict future requirements. Regardless of which proposal succeeds there will be opportunities for architects, structural engineers, aviation experts, project managers and finance professionals.

If you need a visa to work in IT, Engineering, Actuary or Finance then Commonwealth Contractors may well be able to help.

To find out more about our solutions call now on 0800 294 4388 or Send us some details now and we will get right back to you!
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Excitement in London | A Prince is Born

In terms of excitement London has had a good run in recent years with the Royal Wedding of William and Kate in April 2011, The Queen’s Diamond Jubilee in 2012, The Olympics & Para Olympics in 2012,  Andy Murray’s win at Wimbledon a few weeks ago and this week the birth of a boy to the Duke and Duchess of Cambridge. The birth of the third in line to the throne was marked by gun salutes in Green Park and the Tower of London and the ringing of bells at Westminster Abbey.

Apart from these major flurries how is London really doing?

Visiting London

The above events remind people in the rest of the UK and the world that London has historic and cultural places of interest, museums, art galleries and wonderful parks to explore and encourages them to think of visiting. Tourism is a thriving and important part of the economy. While visting Christopher Wren Churches and studying Grinling Gibbons wood carvings there are new places to visit in the City of London such as The Lloyds Building, The Gherkin, The Shard, The Cheese Grater and The Walkie Talkie.

Professionals Working in London

These new buildings have a purpose. There is very little space left at ground level in the City and these tall buildings provide office space for banking, insurace and legal companies. Highly skilled workers from around the world find this an attractive place to work. The job market is flexible and talent is rewarded with rapid career escalation. It is particularly attractive to European high flyers as they can settle and with a short flight can still have close contact with family back home.

The London Gateway

London was once a global centre for maritime trade. It lost that edge because the Thames was not wide enough or deep enough for bigger vessels. Later this year a new deep sea port called The London Gateway will open twenty five miles east of the capital. The port has a 9 million sq ft of buildings attached to house the largest logistics park in Europe. This will streamline the import and export of goods not just to and from London but to and from other parts of the country.

 

Crossrail for Bikes

London is to get a “Crossrail for bikes” as part of a £913m investment plan in cycling. The plan is for more than 15 miles (24km) of cycle ways through the western suburbs, central London, stretching to Barking in the east. It is expected to open in 2016 and will use a Dutch-style segregated cycle track at places such as Victoria Embankment and the Westway flyover.

Crossrail

Crossrail is Europe’s current largest civil engineering project that by 2018 will provide the first phase a new 21km east-west rail link under London. It will provide 42km of new tunnels and link existing Network Rail services from Maidenhead and Heathrow in the west, and Shenfield and Abbey Wood in the east  It will connect the City, Canary Wharf, the West End and Heathrow Airport to commuter areas east and west of the capital. It will bring 1.5 million more people within a 45 minute commute of the West End, The City and Canary Wharf. Journeys from Paddington to the City will take 9 minutes, to Canary Wharf 16 minutes and from Heathrow to Canary Wharf it will take 39 minutes. The trains will be 200 metres long and be able to carry 1,500 people which is nearly  twice as many as the current London Underground tube trains.

In addition Crossrail has developed an art strategy, and is engaging eight world renowned London art galleries to create a permanent line-wide exhibition across the eight central stations.

Crossrail 2

At the end of June this year the Treasury announced £100bn of spending on UK infrastructure projects. £2 million of this is ear marked for a feasibility study into Crossrail 2,  a proposed north-south rail line across London.

The Thames Estuary Airport

Boris Johnson, Mayor of London, is well known across the world because of the success of the Olympics and Para Olympics. Recently he backed a proposal for a new airport in the inner Thames Estuary which could open in 2029. He attacked ministers for “sitting around like puddings” and doing “nothing” as rival cities abroad build vast airports in an attempt to win a greater slice of global trade. Will it happen? We will have to wait and see.

Conclusion

All this new infrastructure and enterprise will mean that London continues to be an exciting and thriving place and will provide interesting career opportunities for the talented and determined from all corners of the globe. By the time  HRH Prince George of Cambridge becomes a young man  transport to, from and within London will have been transformed.

If you need a visa to work in IT, Engineering, Actuary or Finance Commonwealth Contractors may well be able to help.

To find out more about our solutions call now on 0800 294 4388 or Send us some details now and we will get right back to you!
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Jobs for Oil, Gas & Renewable Energy Consultants in Aberdeen

A report published in Novemeber 2012 by PricewaterhouseCoopers (PwC) revealed that Aberdeen was one of the three happiest locations in the UK – Oxford and Reading/Bracknell were the others – and the most contented in Scotland. With Aberdeen this is due in no small part to their second oil boom which continues to bring prosperity to the area.

In March 2013 the Scottish Government announced consent for the development of the European Offshore Wind Deployment Centre (EOWDC) in Aberdeen Bay.The development of offshore wind, wave and tidal energy offers a new field of technology and expertise. Only 2% of residents claim benefits. Jobs are plentiful in Aberdeen, highly specialised and well paid. The skills are transferable to most places in the world.

The prosperity brings its own problems it seeems. “Aberdeen is the only place in the country that is suffering from the challenges of success rather than the problems of failure.” Robert Collier, CEO of the Aberdeen and Grampian Chamber of Commerce told the Guardian. The biggest concerns are housing, transport and a shortage of skilled energy sector workers.

The housing shortage is so severe that it is difficult to get a bed in the youth hostel during the working week. If you do manage to book in to go walking in the hills you may find plenty of oil workers to chat to in the evenings. House prices in the area have more than doubled in the last ten years. For those who manage to ‘find their feet’ Robert Collier has encouraging news “We also have two very strong universities here, and 30% of all Scotland’s food and drink exports come from here. Our tourism and biosciences sectors are flourishing, and there is social and cultural hinterland beyond with great skiing facilities and the Cairngorms national park nearby.” There are plans to extend the airport runway, improve shipping channels and the entrance to Aberdeen Harbour, create an Olympic sized swimming pool and an iconic university library building.

In the opinion of PwC Aberdeen needs to recruit 120,000 skilled workers over the next 10 years or risk losing its place as one of the world’s great energy centres. Half the local industry’s workforce is aged over 45 and so just replacing them is a challenge in itself. With the planned and potential increases in activity there is the added challenge of recruiting these new people to work in Aberdeen while competing for staff with other oil and gas centres around the globe. There are and will be opportunities for consultants in oil, gas and renewable energy for the forseeable future.

Do you need a visa to work in Aberdeen or somewhere else?

To find out more about our solutions call now on 0800 294 4388 or Submit your Details and we will get right back to you!

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Tier 4 Students – 12.12.12 Deadline To Switch To T1(E)

The new guidance for Tier 1 Entrepreneur visa applicants after 13th December 2012 means that most Tier 4 students will have to go home to apply.

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Changes to the shortage occupation list come into effect

The shortage occupation is part of the Tier 2 immigration route via the points based system. Highly skilled migrants from outside the European Economic Area (EEA) seeking to work in the UK must apply for visas via this route. Employers can only bring someone into the UK under Tier 2 if the job is on the shortage occupation list or if they pass a resident labour market test (no suitable resident workers apply after advertising the job in the UK first for 4 weeks).

Occupations that the MAC recommended be removed from the list include:
• secondary education biology teachers;
• speech and language therapists;
• pharmacists;
• orthoptists;
• veterinary surgeons; and,
• rank and file orchestral musicians.

Added to the list will be:
• actuaries;
• high integrity pipe welders;
• environmental scientists; and,
• geochemists

The government has accepted the MAC’s recommended list in full however, rank and file orchestral musicians will not be removed from the list immediately, until further discussions take place with the industry to discuss the resident labour market test.

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Gap between Public & Private Sector Pay Widening

A Director of Policy Exchange, Neil O’Brian, said that \”Public sector pay has got hugely out of control. There is pressure on budgets like never before because of the deficit. If the unions want to preserve their members\’ jobs they have to realise that pay is an issue which will have to be looked at.\”

The editor of IDS Pay Report, Ken Mulkearn, went on to say that \”While our headline figures show pay settlements remain stable, the whole-economy median obscures a wider reality and clear differences between the public and private sectors. The latest figures show that private sector pay awards are where we thought they would be this time of the year, reflecting a degree of recovery in profitability and higher levels of inflation. However, the picture for 2011 is not yet complete and the outlook is difficult to assess.\”

However, although pay may be higher in the public sector the amount of opportunities are certainly far lower, especially once the Government’s budget cuts come fully into force in the near future. At the moment the private sector appears to be driving ahead and creating far more permanent jobs in particular. Roger Tweedy, the Research Director at the Recruitment & Employment Confederation, recently said that “Employers are feeling more confident and are taking a long-term strategic view of their workforce planning. Creating more permanent jobs and the lifting of headcount freezes are solid indicators of this returning confidence.  This is encouraging news at what remains a difficult and volatile time for the UK jobs market. The survey also confirms the emergence of a two-tier jobs market, with 60% of public-sector employers predicting a significant impact on their workforces as cuts begin to bite.  The unexpected surge in business confidence gives hope that private-sector employers can absorb further public-sector job losses.”

Commonwealth Contractors

At Commonwealth Contractors we partner with OISC Registered Private Immigration Firms and Tier 2 Licensed Healthcare and IT Consultancies who may be prepared, where required, to sponsor an individual on a Tier 2 Visa (formerly UK Work Permit). If you are a highly skilled International professional and you would like to work in the UK Commonwealth Contractors can help. Our OISC Registered Partners specialise in Tier 1 General (formerly Highly Skilled Migrant Programme) visa applications and can assist those highly skilled individuals that either wish to apply or extend a Tier 1 General Visa.

For more Information call Commonwealth Contractors now on 0800 294 4388 or Submit your Details and we will get right back to you. Please see other areas of the Commonwealth Contractors site for interesting articles on tax, immigration and contracting.

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British Workers under represented in Europe due to foreign language skills

The Head of the European Parliament Information Office in the United Kingdom, Michael Shackleton, said that “People like me are coming to retirement and it’s very clear there are not enough people to take our places. I think it matters at all levels of the institutions not just at the highest levels. Having people from British backgrounds adds to the mix – it\’s really important if you want to influence what is going on. The balance of the use of language has been in favour of English, but to understand what people are thinking about you also have to get a sense of them and how they see the world.”

Commonwealth Contractors

At Commonwealth Contractors we partner with OISC Registered Private Immigration Firms and Tier 2 Licensed Healthcare and IT Consultancies who may be prepared, where required, to sponsor an individual on a Tier 2 Visa (formerly UK Work Permit). If you are a highly skilled International professional and you would like to work in the UK Commonwealth Contractors can help. Our OISC Registered Partners specialise in Tier 1 General (formerly Highly Skilled Migrant Programme) visa applications and can assist those highly skilled individuals that either wish to apply or extend a Tier 1 General Visa.

For more Information call Commonwealth Contractors now on 0800 294 4388 or Submit your Details and we will get right back to you. Please see other areas of the Commonwealth Contractors site for interesting articles on tax, immigration and contracting.

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First IR35 Forum meeting reports progress

Key Points from the meeting minutes:

  • Draft guidance should be written to reassure those who are clearly \’outside the ambit\’ of IR35, that they need not worry about IR35 compliance.
  • The move to specialist IR35 teams should improve the likelihood of inconsistency when selecting compliance targets.
  • The Forum will consider creating a \’Gateway Test\’ to help individuals determine their position under IR35, however there are numerous difficulties in creating one uniform test to suit all parties.
  • HMRC addressed concerns over whether use of the currently IR35 helpline would in itself make an individual a target for a formal review. HMRC say that cases were only taken on the basis of risk assessment alone
  • Rather than making random checks as is commonly perceived, HMRC uses risk assessment to decide with IR35 cases to review. Although unwilling to disclose their risk criteria, HMRC agreed that there was a need to be more transparent about the process of identifying potential IR35 targets.
  • Attendees expressed their concern over \”customer segmentation\”, e.g. that the current approach does not recognise the difference between \’professional contractors\’ and \’temporary workers\’ in the labour market. HMRC agreed to look at how the current segmentation model could be expanded.

Kate Cottrell of Bauer & Cottrell said that \”As the minutes show we covered a lot of ground at the inaugural meeting and there is still a lot more work to do. I felt the general mood for making improvements to the way IR35 is administered was very positive and the Forum presents a real opportunity to get some clear guidance for everyone.  For the first time since IR35 began we have a central point for contact with HMRC, who have the appetite and the power to ensure consistent treatment and processes for dealing with IR35 across the country. Providing we can iron out the detail for customer segmentation, those potentially affected by IR35 will be able to establish their level of risk of IR35 investigation.”

Commonwealth Contractors

At Commonwealth Contractors we partner with OISC Registered Private Immigration Firms and Tier 2 Licensed Healthcare and IT Consultancies who may be prepared, where required, to sponsor an individual on a Tier 2 Visa (formerly UK Work Permit). If you are a highly skilled International professional and you would like to work in the UK Commonwealth Contractors can help. Our OISC Registered Partners specialise in Tier 1 General (formerly Highly Skilled Migrant Programme) visa applications and can assist those highly skilled individuals that either wish to apply or extend a Tier 1 General Visa.

For more Information call Commonwealth Contractors now on 0800 294 4388 or Submit your Details and we will get right back to you. Please see other areas of the Commonwealth Contractors site for interesting articles on tax, immigration and contracting.

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