Tag Archives: UK Tax News

Prime Minister promotes Charitable Donations through Pay Checks

David Cameron said that “With employers, as part of Every Business Commits, we will launch a major new campaign to promote payroll giving. That means making it easier for their workers to give money to charity automatically through their pay checks. In America around a third of employees already do this. In the UK it\’s only around three per cent. We want that to be a lot higher.”

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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HMRC to crackdown on VAT threshold rule breakers

The Director of Risk & Intelligence for the HM Revenue & Customs, Mike Wells, said that “Our aim is to get as much input as possible into our future campaigns so that the views and experience of people and organisations outside the department play a fuller part in what we design for customers. We are already in contact with a number of interested parties and I expect many more to contact us with their views before we finalise the design of the VAT initiative. This will be the model for all our future campaigns and we look forward to being even more open about the compliance activity HMRC is undertaking to ensure we reduce the tax gap and help customers pay what they owe.”

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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EBT Contractors given until 31st December 2011 to come clean

The Permanent Secretary of the HM Revenue & Customs, Dave Hartnett, said that “This approach to customers gives them the opportunity to discuss their cases with us and work in partnership to establish how the facts of their case fit within the proposals. If EBT users do not respond by 31 December 2011, HMRC will assume that they are not interested in engaging with them and will look to progress enquiries formally.”

“HMRC will continue to enquire into open EBT cases and may open further enquiries during this period including seeking further information. Where HMRC is unable to agree settlement proposals with employers or companies then they will, as appropriate, continue to progress cases within the terms of the published Litigation and Settlement Strategy, and the new legislation will apply to continuing EBTs, and funds held in them.”

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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HMRC doubles Enforcement Officers to 200 people

Announcing the new enforcement measures, Mike Eland, the Director General of Enforcement and Compliance at the HMRC said that \”Building on HMRC\’s successful approach to tackling fraud in the labour provider industry, these teams will make it even harder for fraudsters. We will tackle employers who don\’t play by the rules and the organised crime gangs who exploit their workers. We will also work collaboratively with labour users and businesses in these sectors to help them use legitimate providers. This will help to create a level playing field for compliant businesses to compete in the market place.\”

Speaking further to the announcement Tom Hadley, the Recruitment and Employment Confederations Director of Policy and Professional Services said that “This is a big step forward, there is nothing more frustrating than to be placed at a commercial disadvantage by doing the right thing. Unfair practices create market distortions and have a huge impact on legitimate businesses as well as on workers. We need clarity and consistency in the way that regulations are applied, we also need real clout in terms of Government enforcement. As well as monitoring how today’s announcement works on the ground, we will continue to play our part by flagging regulatory changes and working with recruiters to ensure they are compliant. HMRC has said today it will work in collaboration with labour users and businesses to help them use legal providers and the REC will do all it can to further this aim.”

Contractors running Limited Companies are recommended to use a professional accountants to ensure compliance at all times.

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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OTS says decision not to abolish IR35 was the Chancellor’s

An Office of Tax Simplification (OTS) spokesperson told the Contractor Tax website Shout99 that “The OTS review of IR35 considered a wide range of options – including abolition. Our report came down in favour of two main options – suspension, with a view to eventual abolition, or making significant improvements in HMRC\’s running of the system, as well as a third – the \’genuine business test\’. The OTS set out the arguments in the report, and does not accept that any option was given limited consideration. The proposals evolved with input from our consultative committee, however, ultimately, it was the Chancellor\’s decisions on which route to follow.”

Commonwealth Contractors

Commonwealth Contractors is a collection of highly skilled professionals from the Commonwealth and beyond. We partner with OISC Registered Immigration Partners capable of professionally representing Tier 1 Visa Applications / Extensions and Tier 2 Licensed Consultancy & Associated Trust Partners who may be prepared, where required, to sponsor a Medical, Information Technology or Engineering Professional on a Tier 2 Visa (formerly UK Work Permit).

To find out more call Commonwealth Contractors now on 0800 294 4388 or Submit your Details and we will get back to you. Please be prepared to send a copy of a recent CV so that we can pass to interested partners.

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HMRC Business Record Checks start early

The Deputy President of the Chartered Institute of Taxation (CIOT), Anthony Thomas, said that “HMRC’s reassurance that this is a ‘test and learn’ pilot where no penalties will be levelled, other than in exceptional circumstances, is welcome. However they should have made this clear to tax advisers, business organisations and, above all, those taxpayers – represented and unrepresented – they are targeting, from the outset. By not doing this HMRC gave the strong impression that they were proceeding with this project prematurely and without listening to consultees.”

According to the HMRC the Business Record Checks programme is intended to bring about a ‘major improvement’ in the standard of small business record keeping. Earlier this year Brian Redford of the HM Revenue and Customs said that “It may seem like a challenge, particularly when you’re starting out, but keeping good records will bring real advantages to your business. Get a proper system in place and you’ll not only be confident that you are paying the right tax, but you’ll keep up-to-date with how much you owe suppliers and how much you are owed. Later this year, HMRC will start a programme of Business Records Checks that will look at the adequacy and accuracy of business records in SMEs to bring about a major improvement in the standard of record-keeping. Now is the time to invest a bit of effort to make sure your business records are perfect.”

The checks could see professional freelance contractors running a one man Limited Company targeted. Contractors are being urged to make sure they are keeping appropriate records and are ideally working with a reputable accountant that specialises in Contractor accounts.

Commonwealth Contractors

Commonwealth Contractors is a collection of highly skilled professionals from the Commonwealth and beyond. We partner with OISC Registered Immigration Partners capable of professionally representing Tier 1 Visa Applications / Extensions and Tier 2 Licensed Consultancy & Associated Trust Partners who may be prepared, where required, to sponsor a Medical, Information Technology or Engineering Professional on a Tier 2 Visa (formerly UK Work Permit).

To find out more call Commonwealth Contractors now on 0800 294 4388 or Submit your Details and we will get back to you. Please be prepared to send a copy of a recent CV so that we can pass to interested partners.

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HMRC may struggle with new IR35 enforcement policy

The Head of Policy at the Recruitment and Employment Confederation (REC) said that \”With a further 15 per cent cut already planned to their budget, it seems highly unlikely that the HM Revenue & Customs will be able to provide the added scrutiny that would be required if IR35 were simply left in its current state, as the OTS has proposed. If they cannot say how much the tax brings in, or how much it costs to enforce, how can there be any confidence that HMRC can step up their game and turn around this failing system? They are clearly already struggling under a heavy workload, which the Treasury should be looking to relieve rather than add to. Both other options given by the OTS for IR35 reform – either suspending it altogether, or creating a clearer business test to automatically exempt large numbers of freelancers from the system – are far more workable, sensible solutions for this long-running problem that would allow HMRC to focus its resources more effectively.\”

As well as asking the HM Revenue and Customs to improve the enforcement of the existing IR35 rules he will also be heaping new ‘disguised remuneration’ policies on them over the course of the next year. The Chartered Institute of Taxation (CIOT) recently said that “we foresee that many employers will need to approach HMRC to determine whether or not their current arrangements are affected by the new rules. We remain concerned that if discretion is left to HMRC to decide what arrangements are the right side of the line, and which are not then the position, will always be uncertain and subject to a change of HMRC view”. The new rules for disguised remuneration will add to the HMRC workload at a time when they are already under immense pressure.

Commonwealth Contractors

Commonwealth Contractors is a collection of highly skilled professionals from the Commonwealth and beyond. We partner with OISC Registered Immigration Partners capable of professionally representing Tier 1 Visa Applications / Extensions and Tier 2 Licensed Consultancy & Associated Trust Partners who may be prepared, where required, to sponsor a Medical, Information Technology or Engineering Professional on a Tier 2 Visa (formerly UK Work Permit).

To find out more call Commonwealth Contractors now on 0800 294 4388 or Submit your Details and we will get back to you. Please be prepared to send a copy of a recent CV so that we can pass to interested partners.

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CIOT urges Government to reconsider disguised remuneration policy

A spokesperson for the Chartered Institute of Taxation (CIOT) said that “We urge further reflection before the final legislation is introduced. The proposals are moving to taxing the form (involvement of a third party) rather than the substance (reward or loan in connection with the employment) of the arrangement. There are many hard edges which will mean that the legislation will have to be read very carefully to determine whether, in all likelihood inadvertently, the new PAYE/NICs triggers have been activated. Indeed, we foresee that many employers will need to approach HMRC to determine whether or not their current arrangements are affected. However we remain concerned that if discretion is left to HMRC to decide what arrangements are the right side of the line, and which are not then the position, will always be uncertain and subject to a change of HMRC view”

Commonwealth Contractors

Commonwealth Contractors is a collection of highly skilled professionals from the Commonwealth and beyond. We partner with OISC Registered Immigration Partners capable of professionally representing Tier 1 Visa Applications / Extensions and Tier 2 Licensed Consultancy & Associated Trust Partners who may be prepared, where required, to sponsor a Medical, Information Technology or Engineering Professional on a Tier 2 Visa (formerly UK Work Permit).

To find out more call Commonwealth Contractors now on 0800 294 4388 or Submit your Details and we will get back to you. Please be prepared to send a copy of a recent CV so that we can pass to interested partners.

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Budget good in the long run but of little immediate impact

John Philpott, the Chief Economist at the Chartered Institute of Personnel and Development (CIPD) said that “The OBR forecasts have moved closer to the economic outlook for 2011 published by the CIPD following Mr Osborne’s first budget last year, but still look very optimistic for 2012 onward and may well have to be revised further downward in due course. Set alongside the OBR figures, Mr Osborne’s ‘pain today, growth tomorrow’ budget reads like a long-term fitness plan for an economy whose immediate pressing need is for more sensitive intensive care than the Chancellor is prepared to provide.”

The CIPS employee relations advisor, Mike Emmott, went on to say that “The onus should be on government to bring forward only light-touch employment regulations that do good, not harm – irrespective of company size. A moratorium for the smallest firms is a dangerous precedent that risks creating a two-tier labour market, and could even act as a perverse disincentive for growth amongst firms considering employing the extra staff member that would bring them into the ‘regulated tier’ of the labour market.”

In terms of the potential merger of Income Tax & Employees National Insurance, Matt Duffy, partnerships manager at Lorica Employee Benefits said that “Payroll experts at two major customers think that from an admin perspective, combining NI and tax will make their job simpler. Currently the three tax bands and personal allowances create many parameters and processes which they need to work around. However, from an employee perspective we will be interested to find out, through the consultation process, how benefits in kind will be managed. If the traditional mechanism P11d is not adapted, we will see a significant increase in tax for employees.” Ian Dewar went on to say that “The bringing together of NICs with income tax and the removal of the difference in rates between self employed and employed would not only introduce a huge simplification but also lessen concerns of tax loss due to employment status. Politically, the merger of income tax and NICs would require bravery as it would finally make people aware of their real marginal rates of tax. However, it would bring substantial benefits by simplifying the tax regime.”

Commonwealth Contractors

Commonwealth Contractors is a collection of highly skilled professionals from the Commonwealth and beyond. We partner with OISC Registered Immigration Partners capable of professionally representing Tier 1 Visa Applications / Extensions and Tier 2 Licensed Consultancy & Associated Trust Partners who may be prepared, where required, to sponsor a Medical, Information Technology or Engineering Professional on a Tier 2 Visa (formerly UK Work Permit).

To find out more call Commonwealth Contractors now on 0800 294 4388 or Submit your Details and we will get back to you. Please be prepared to send a copy of a recent CV so that we can pass to interested partners.

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Income Tax & National Insurance Systems to be merged?

A senior tax manager at Grant Thornton UK, Ellie Gamble, said that “We cautiously welcome government plans to merge the operation of income tax and NICs. This could really make life easier for both employer and employee. We would, however, urge the government not to rush anything through. Moreover, the change should not lead to ‘scope creep’, resulting in additional tax charges under the smoke screen of simplification. For example, employees currently don’t pay national insurance on employer-provided benefits, even though they are taxable. If this is to be changed, it must be done in the clear light of day. The government seems to have made up its mind about the principle of merging two duties which have for a long time been perceived as one thing, the government’s share of earnings. The consultation is just about the detail of such a merger. We would urge a measured approach to ensure that we don’t throw

However Ian Dewar, a small business tax convenor at the ICAS said that “The bringing together of NICs with income tax and the removal of the difference in rates between self employed and employed would not only introduce a huge simplification but also lessen concerns of tax loss due to employment status. Politically, the merger of income tax and NICs would require bravery as it would finally make people aware of their real marginal rates of tax. However, it would bring substantial benefits by simplifying the tax regime.”

Although the integration of the two taxes would in many ways be seen as a positive step forward the Government would need to sell the idea to the nation in order to avoid a backlash. An integration of the tax systems would see headline figures jump significantly, something which could lead to a great deal of misunderstanding.

Commonwealth Contractors

Commonwealth Contractors is a collection of highly skilled professionals from the Commonwealth and beyond. We partner with OISC Registered Immigration Partners capable of professionally representing Tier 1 Visa Applications / Extensions and Tier 2 Licensed Consultancy & Associated Trust Partners who may be prepared, where required, to sponsor a Medical, Information Technology or Engineering Professional on a Tier 2 Visa (formerly UK Work Permit).

To find out more call Commonwealth Contractors now on 0800 294 4388 or Submit your Details and we will get back to you. Please be prepared to send a copy of a recent CV so that we can pass to interested partners.

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