How National Insurance Contributions (NICs) are calculated
Contractors may be liable to pay National Insurance Contributions (NICs). Calculating how much should be paid depends on the nature of their earnings.
How income tax is calculated
Contractors are liable to pay tax on their total income. Calculating how much income tax a contractor pays depends on the nature of their earnings.
Contractor guide to the General Anti-Abuse Rule (GAAR)
Contractors should take into account the General Anti-Abuse Rule (GAAR) when making tax-planning decisions, says James Abbott of Abbott Moore.
Contractor guide to HMRC’s webinars on tax and directors’ responsibilities
Contractors, particularly those new to contracting, may find HMRC’s webinar series provides useful introductions to basic business responsibilities.
Contractor guide to answering the self-assessment tax return service company question
Contractors should answer the tax return’s service company question as leaving it out can bring unwelcome attention, warns ClearSky’s Daniel Mepham.
Contractors faced with child benefit withdrawal should take action before 7 January
Contractors earning over £50,000 a year & facing the withdrawal of their child benefit should implement a tax strategy before the 7 January deadline.
Contractor guide to what information their accountants should share with HMRC
Contractors receiving HMRC information requests should seek professional assistance and not tackle them alone, says James Abbott of Abbott Moore.
No immediate threat to contractors from PA Holdings case, confirms tax expert
Contractors are unlikely to be affected by the PA Holdings case, even though the legislation could be applied wider, says Abbott Moore’s James Abbott.
Public sector contractors may be driven out if off-payroll guidance is implemented
Contractors may be driven out of the public sector and services may suffer if official guidance leaked to PCG is implemented across government.
HMRC to act “as soon as possible” against civil service contractors at high IR35 risk
HMRC to investigate and take action against civil service contractors identified by the government’s off-payroll review as possibly being inside IR35.
P35 guidance: unsure contractors should answer ‘no’ to service co question, says HMRC
Contractors are not legally obliged to answer the P35 question 6, ‘Are you a Service Company?’, and if they’re unsure should answer ‘no’.
The tax avoidance arms race is MAD: mitigation, avoidance and disclosure
The tax mitigation arms race between HMRC and tax advisors leads to a never-ending cycle of mitigation, avoidance and disclosure, says David Colom.
Contractors’ guide to the flat rate VAT scheme
Contractors can benefit from the flat rate VAT scheme by cutting admin & potentially enjoying a cash surplus, explains Abbott Moore’s James Abbott.
Breaking news: 10,000 HMRC inspectors being hired to target ‘disguised businesses’
Exclusive: Buried in the post-Budget Finance Act are plans for 10,000 extra HMRC inspectors to enforce new rules targeting ‘disguised businesses’.
Contractors planning to use ESC C16 should do so before £25K cap starts in March 2012
Contractors planning to retire or find a permanent job and close their company via ESC C16 should do so before a new cap of £25,000 starts in April 20
Key tax penalties imposed by HMRC on contractors
From late delivery of tax paperwork to giving the wrong information – HMRC can be unforgiving and will fine contractors who don’t play by the rules.
Contractor guide to negotiating personal tax payments on account with HMRC
Contractors experiencing a sudden fall in income might need to reduce their payments on account with HMRC explains James Abbott of Abbott Moore.
HMRC signals new direct attack on contractors, citing disguised remuneration
HMRC has promised to challenge schemes that are being marketed to contractors as a way of getting around new disguised remuneration rules.
Contractor guide to tax credits from HMRC: working tax credit and child tax credit
Contractors can qualify for tax credits from HMRC and should submit a claim in case their income unexpectedly falls, says Abbott Moore’s James Abbott.
Flat rate VAT scheme - buying and selling assets
Contractors using the flat rate scheme for VAT should be aware of the rules about buying and selling capital items, says Abbott Moore’s James Abbott.
Contractors will suffer from HMRC budget cutbacks unless plans improve, says NAO
Contractors are at risk of suffering ongoing uncertainties as a result of HMRC’s £1.6bn cost cutting programme unless plans improve says the NAO.
Contracting and Personal Liability Notices (PLNs) from HMRC: a contractor guide
Contractors whose limited company has unpaid NICs can be found personally liable if HMRC believes the debts arose through directors’ neglect or fraud.
Contractor Business Record Checks campaign by HMRC: free online risk assessment tool
Contractors concerned that their business records won’t pass inspection when HMRC starts checking 50,000 firms should use Business Link’s online tool.
UK contractors work in one of the world’s highest taxed countries – Adam Smith Inst
UK contractors work in one of the world’s highest taxed countries, yet such punitive tax levels raise less revenue, says the Adam Smith Institute.
Tax avoidance clampdown on ‘disguised remuneration’ and trusts could hit contractors
New government plans to clamp down on tax avoidance and ‘disguised remuneration’ could impact on contractors.
New VAT rate rules for contractors – changes due to the 20% rate from 4 January 2011
Limited company contractors will be required to change their invoices & VAT return accounting when VAT increases from 17.5% to 20% on 4 January 2011.
Contractors’ tax bills could soar, and IR35 ‘die’, under Mirrlees Review proposals
In its far-reaching review of the UK tax system, the Mirrlees Review recommends measures that could increase contractors’ tax bills and end IR35.
Contractors could face new HMRC investigation threat to fill UK’s tax gap
With HMRC receiving a £900m war chest, and a tax gap potentially as high as £125bn, is unwelcome attention likely to fall on contractors’ tax affairs?
Contractors should benefit from a simpler, predictable and more stable UK tax system
The government’s tax policy consultation aims to create a simpler and fairer UK tax system that could reduce tax uncertainties for contractors.
Contractor guide to the P11D - declaring benefits and expenses
ClearSky’s Derek Kelly explains why some contractors must complete a P11D for HMRC each year and the penalties for filing incorrectly or late.