UK pharma giant GlaxoSmithKline has found itself targeted by authorities after HMRC sent nearly 1,500 of its limited company contractors identical letters. The letters stated that in HMRC’s view, their contracts were caught by IR35. Contractors who don’t agree with this assessment were informed they must either write to HMRC, supplying them with supporting evidence of why they are not caught under the rules, or else work out their appropriate PAYE tax and NICs for the 2018/19 tax year.…READ MORE
Following the publication of their consultation, the government have released the Off-payroll Draft Legislation as part of the Finance Bill 2019-2020. The legislation will come into effect in both the public and private sectors from April 2020. Although the consultation sought to address concerns in several areas, the general consensus is that the resulting legislation does little to address these key issues, which are as follows:
- The definition of a small business for the purpose of exemption
- Non-compliance in the labour supply chain
- Clients making non-compliant blanket determinations/ NI deductions
- Giving workers and fee-payers an independent means of challenging status determinations made by client organisations.
The actor Robert Glenister has spoken out against the devastating impact of being investigated by HMRC. Best known for his roles in high profile TV dramas Spooks and Hustle, Glenister has opened up to the press after struggling with severe anxiety and depression as the result of his long-running tax dispute with HM Revenue & Customs.…READ MORE
Following on from the debate in Westminster last month, MPs are calling for the government to hold off on plans to extend the off-payroll rules to the private sector next year.
An Early Day Motion (EDM) has been tabled, calling for Government to delay any further implementation of the off-payroll rules in favour of exploring other options.…READ MORE
In the event of an IR35 enquiry, HMRC will ask to see copies of the written contract. Although it’s common practice for them to dispute paper contracts as ‘contrivances’, it’s crucial that contractors take steps to ensure that the information presented in their contracts is consistent.…READ MORE
MPs have met in Westminster to debate the public sector rules and private sector proposals. Many spoke on behalf of contractors in their constituencies, giving insight into the impact of the rules on individuals and their businesses. Ged Killen MP said, “In many ways, the IR35 rules are a stopgap in the journey towards a statute book that supports 21st-century employment practices and the realities of modern workers’ lives.…READ MORE
Uncertainty over Brexit has been generally positive for the contractor market so far, with many companies selecting interim support for positions, allowing them the flexibility to scale up for market demand without long-term commitment. With organisations creating new Brexit-specific positions, specialist legal and financial skills are attracting a particular premium.…READ MORE
In the latest development of the controversial Off-payroll rules, HMRC have challenged the employment status of popular ITV presenter Lorraine Kelly, only to face a crushing defeat. The case saw Kelly, a presenter of TV chat shows for some 25 years, appeal against the tax authority for a retrospective tax bill she received.…READ MORE
Set against the backdrop of Brexit uncertainty, last week Chancellor Phillip Hammond outlined his vision for the future of spending in the Spring Statement. Hammond alluded to the fact that there could be another statement before the end of the summer, no doubt dependent on the progress of a Brexit deal.…READ MORE