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Difference between tax avoidance and tax evasion
Contractors can use strategies for tax avoidance as the practice is perfectly legal, whereas deliberate tax evasion is illegal and a criminal offence.
�ately don't pay the tax they should HMRC In a contracting context, this could involve deliberately falsifyi�
Category: Articles: Tax Issues | Thu, 29 May 2014

Contractor tax avoidance schemes – understanding the benefits and risks
Contractors entering into tax avoidance schemes might find that they work, but there can be many pitfalls, as James Abbott of Abbott Moore explains.
�s, this is not an issue. But Abbott has seen many contracts from clients that stipulate no offshore entities� �s are particular about the entity with which they contract. For regular limited company contractors, or umbr�
Category: Articles: Tax Issues | Thu, 03 Jul 2014

Contractor guide to the advantages and disadvantages of being VAT registered
Contactors unlikely to earn more than £79,000 are not required to register for VAT, but there are advantages and disadvantages to non-registration.
�there are some advantages to non-registration for contracting businesses. The first is the reduction in adminis�
Category: Articles: Tax Issues | Tue, 24 Sept 2013

Contractors who subcontract must comply with HMRC employment intermediary obligations
Contractors who subcontract are classed as employment intermediaries and must follow HMRC guidelines to ensure subcontractors pay the right tax.
�hat this means is, should the worker who has been contracted to complete the work be found to have not paid th� �ied: Personal service is a requirement There is a contract between the client and intermediary, or main cont�
Category: Articles: Tax Issues | Mon, 12 Oct 2015

Moving buy-to-let properties into a company - issues to consider
Contractors might be able to mitigate the impact of buy-to-let tax changes by putting rental income into a company, says James Abbott of Abbott Moore.
�o have to find.” Contractors urged not to combine contracting and rental income For contractors who receive suf�
Category: Articles: Tax Issues | Wed, 25 May 2016

Contractor limited company VAT inspections – preparation and process
Contractors who have been selected by HMRC for a VAT inspection should not be concerned if they have stuck to the rules and are well prepared.
�VAT certificate Any supporting documents, such as contracts and relevant correspondence. The inspector normal�
Category: Articles: Tax Issues | Mon, 27 Jul 2009

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.
�rwork. “Many contractors could spend their entire contracting career without ever qualifying for tax credits,”� �income drops, say for an extended period between contracts or on the birth of a new child. Eligibility crite� �ny, rather than a client. “Searching for the next contract opportunity, networking, checking job boards, app�
Category: Articles: Tax Issues | Mon, 08 Aug 2011

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.
�ddenly, perhaps due to a prolonged period between contracts, or a rental property being empty, the payment on�
Category: Articles: Tax Issues | Wed, 14 Dec 2011

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.
�owances. For example, a contractor may complete a contract in March at the end of the tax year but not invoi�
Category: Articles: Tax Issues | Wed, 14 Dec 2011

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.
�AT percentages (as at tax year 2013/2014) for key contracting sectors include: Computer and IT consultancy or d�
Category: Articles: Tax Issues | Tue, 24 Apr 2012