If you are employed in the UK, you will have a tax code. Tax codes tell employers and employees how much tax should be taken out of a pay packet before it goes to the employee.
tax Articles
Controversial changes to off-payroll working (IR35) rules are set to come into force in April 2021, after MPs ignored a call to delay the changes until 2023.
Changes to the way IR35 rules are applied in the private sector were originally penned to take effect in April 2020, before pandemic-related uncertainty forced a stay of execution from lawmakers.
HMRC’s Check Employment Status for Tax (CEST) tool has been a touchy subject for contractors that want to find out if they will be inside or outside IR35.
The online tool was first introduced in 2017 to help contractors and their engagers judge employment status for tax purposes and, ultimately, how a contractor will be taxed.
The service asks a series of questions based on key legal criteria. It helps provide a judgement in most straightforward cases, with assistance in more complex cases available through a handbook and the HMRC call centre.
HMRC has recorded a rare IR35 victory after a tribunal decided that three self-employed BBC newsreaders were operating as so-called ‘disguised employees’.
Congratulations to Allison Gallagher, Finance & HR Manager, on winning July Umbrella.co.uk Employee of the Month.
Allison has been invaluable and hard working member of the team for 9 years.
“Well done to a very deserving winner!" Simon Pearson, Finance Director.
Reports suggest that the Chancellor Rishi Sunak could increase limited company contractor taxes to help reduce Britain’s COVID-19 debt.
The Autumn Statement isn’t expected until mid-to-late November at the earliest, but the rumour mill is already beginning to swirl - and tax hikes for companies and contractors look to be on top of the Chancellor’s agenda.
New HMRC research has revealed that some of the most attractive ‘umbrella’ deals on comparison and broker websites aren’t tax-compliant, meaning they could land you with a big bill further down the line.
The companies that come out on top of these comparison listings usually boast unbelievable take home pay figures, together with other ‘too good to be true’ advantages. In reality, the only way umbrella companies can achieve these ‘enhanced’ or ‘advanced’ rates is through tax avoidance.
Remember, YOU are responsible for paying the right amount of tax. The tax man will come after YOU if you try and cheat the system. And if a deal sounds too good to be true, YOU know that it probably is.
At Umbrella.co.uk, we’re proud of our track record of protecting clients through compliance. We’re accredited by the FCSA and APSCo, two of the largest and most prestigious staffing and employment bodies. We have also been approved as business partners by the Recruitment and Employment Confederation (REC).
The controversial loan charge, which affects contractors who participated in ‘disguised remuneration’ schemes, could be scrapped after Chancellor Sajid Javid commissioned an official review into the tax.
The new review will conclude by mid-November to give taxpayers certainty ahead of the January Self Assessment deadline. It will be led by Amyas Morse, the former chief executive of the National Audit Office.
As Christmas draws closer, many contractors will be finalising their plans for the festive season.
You know who is in charge of wrapping presents, what time you’re going to travel to the in-laws and who’s cooking the turkey. But you shouldn’t forget about the tax return deadline in amongst all the merriment.
After all, you only have until 31 January to complete and pay your Self-Assessment.