Mais conteúdo relacionado

Similar a Keeping contractors and freelancers on the right side of HMRC(20)



Keeping contractors and freelancers on the right side of HMRC

  1. Umbrella company? Limited company?OR Keeping contractors and freelancers on the right side of HMRC Which structure is best?
  2. Legislation and key changes over last 15 years 2000 IR35 legislation 2007 Manager service company legislation 2012 IR35 business entity test 2014 Agency legislation, focus on Supervision, Direction, Control 2015 Agency reporting obligations begin from April 6 2015 HMRC beats Reed in £158m temps’ tax case 2016 Introduction of tax slabs on dividends and tax relief on travel and subsistence to be abolished 
  3. Understanding IR35 No employee – employer relation IR35 Strong employee - employer relation Outside IR35 IR35 checklist questions Inside IR35 Yes Personal service / Right of substitution No Contractor Control Client High Mutuality of obligation Less Own Provision of equipment Client Yes Financial risk No Irregular Basis of payment Regular No Exclusive service Yes No Part of organization Yes Business like Intention of the party Casual Yes Business like trading No
  4. Agency legislation See points 5 and 6 1. Focus on contractors’ employment status – whether they are truly self employed and not under supervision, direction and control – agencies required to obtain proof 2. Introduction of RTI and reporting requirements upon agencies to divulge details of contractors paid gross together with their employment status, eg, self employed, limited company 3. Debt transfer risk to agencies of contractors’ unpaid tax and NI for reporting which is inaccurate or misleading regarding employment status 4. Penalty introduced by HMRC for providing incorrect information
  5. Quarterly reporting  Workers details  How he gets paid o SE o Partnership or LLP o Outside UK o Limited (PSC) or Umbrella  Assignment details  Payment details  Company details
  6. Employment status manual ESM2051 Agency and temporary workers: agency legislation – provisions from 6 April 2014: service companies (including PSCs) Three sets of legislation need to be considered by a contractor in a set order to identify their tax status. If the Agency legislation is not applicable, then the provisions of the MSC legislation should be reviewed; if they are not applicable then the contractor must Look at the IR35 legislation. (See ESM2051) Agency legislation MSC legislation IR35 legislation
  7. Solutions for agency workers Using umbrella company Fall outside scope but will be reported Loss of tax relief on travel and subsistence but some tax offset expense still available GMC revalidation/appraisal etc Contractors operating through a Limited company • draw salary, dividends and file year end self-assessments ensure no more directors and shareholders in the company • IR35 contract reviews o if outside then can claim expenses, salary, dividends o if inside, then deemed salary What to look for after the Autumn Statement
  8. Current HMRC consultations • Freelancer limited company • Intermediaries legislation (IR35) • Simplification of tax and NI contributions Other updates HMRC has started using Accelerated Payment Notices (APNs) for debt recovery
  9. 020 3507 0087 Thank you Follow us on: BradleysAcc company/bradleys-accountants-limited