Tag Archives: HMRC

MPs want tax deduction they deny to everyone else

Now that MPs expense claims are subject to some scrutiny, they find themselves in the position of ordinary mortals, contractors, small businesspeople, and the self employed, dealing with significant expenses, and having to make tax returns to HMRC.

Because the tax laws (passed by MPs) are very complex, many MPs are paying accountants to help them complete their tax returns.    Welcome to the world you have created for the rest of us!

But they don’t like it and, as reported in the telegraph

http://www.telegraph.co.uk/news/politics/9488879/Tax-inspectors-challenge-MPs-right-to-claim-expenses-on-accountants.html

they expect Accountants costs to be reimbursed by parliament, and to be tax free.   Parliament (run by MPs) is happy to oblige, but HMRC has ruled that the payments are a benefit in kind, and so taxable.

The telegraph reports “An HMRC spokesman said he could not comment on MPs’ tax affairs but said: “Under long-standing and strictly applied rules relating to the taxation of employment, income tax relief is only available for general expenses if they are incurred ‘wholly, exclusively and necessarily in the performance of” the duties of the employment.  “

Many of the issues faced by MPs are similar to the self employed, contractors, and those running small businesses.  At Commonwealth Contractors we hope that MPs will stop asking for yet more special treatment and insulation from the laws they pass for the rest of us.  Instead, like a CEO going to work on the shop floor for a day, they should treat their experience as an opportunity to understand what they have created.  They are responsible for the tax system. Seeing how it works at the sharp end puts them in a better position to do their job of making the system better.   MPs should ensure that they can understand their own laws and follow them without professional help.  Or, at the very least, accept that they have created such a complex system that use of an accountant is a necessary cost of compliance, and make the cost tax-deductible for everyone.

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Wipro Announces Profit & Staff Increases

  • The addition of 31 new clients during the last quarter of 2009
  • A Year on growth of 2.4% in IT Services Revenue, up to $1,126.8 million
  • A 5% Year on Year growth in total Revenue
  • A net addition of 4,855 employees
  • That the IT Services business now accounted for 74% of total Revenue

The company which provides services and solutions to many leading companies (including BG Transco, Thomas Cook, Seagate, Farmers, GE and Home Depot, Nortel, Cisco, Lucent, Alcatel and Ericsson) expects cloud computing to be a big growth area in the future.  Wipro recently announced the launch of a cloud based strategic retail solution which it expects to fair well in the year to come. Azim Premji, Chairman of Wipro said that he expected ‘revenue from the IT Services business to be in the range of $1,161 million to $1,183 million’ for the first quarter of 2010.

Speaking further to the results Ayan Mukerji, Chief Sales and Operations Officer for Europe said ‘The primary driver for customers is still cost cutting and they are not increasing discretionary spend’. Girish Paranipe, Joint Chief Executive Officer for IT Business said that although the economic climate is improving Wipro is still not in a position to negotiate prices with clients unless the work involves risk taking, truly complicated work or services that require unique skill sets in short supply.

Indian Information Technology Professionals working in the United Kingdom

Each year Wipro Technologies sends thousands of highly skilled Information Technology professionals to the United Kingdom to deliver services further to client facing assignments. The large majority of these professionals are sent on Tier 2 General Visas (formerly UK Work Permits). If you are a highly skilled IT professional currently in the UK on a Tier 2 Work Permit Commonwealth Contractors may be able to help you either:

·    Transfer to a Tier 1 General Visa via OISC Registered Immigration Partners, OR
·    Gain Tier 2 (Work Permit) Sponsorship with a UK Based IT Consultancy

At Commonwealth Contractors we partner with many Tier 2 Licensed IT Consultancies prepared to sponsor workers on Tier 2 visas where required. We also work with OISC registered Private Immigration Firms who specialise in Tier 1 Visa Assessments, Applications & Extensions.

For more Information on transferring to a Tier 1 visa (HSMP) or gaining Tier 2 (Work Permit) Sponsorship call Commonwealth Contractors now on 0800 294 4388 or Submit your details now and we will get right back to you.

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