HMRC IR35 unit actively targeting public sector contractors
Contractors and interims working in the public sector are being actively targeted by HMRC’s IR35 unit, which is most likely using intelligence generated as a result of the 2012 Treasury review of public sector off-payroll arrangements. “Never before has there been so much intelligence available about contractors working in the public sector,” says Qdos Consulting’s Andy Vessey. “The latest minutes from the IR35 Forum flag the renewed emphasis of HMRC targeting public sector contractors,” he adds. More...
Contractors face further growth in HMRC IR35 reviews: IR35 Forum Minutes
HMRC has forecast that by March 2013 it will have 230 ongoing and resolved IR35 cases investigating contractors under the risk-based approach and business entity tests introduced in May 2012. The latest IR35 Forum minutes of the meeting on 22 January 2013 also show the concern expressed by non-HMRC members about the proposed office holder amendment to IR35 and HMRC’s targeting of public sector contractors. More...
Contractor tax avoidance scheme providers should be ‘named and shamed’ by HMRC
Companies offering contractor tax avoidance schemes, and the contractors who use them, should be ‘named and shamed’ by HMRC according to Margaret Hodge MP, chair of the Committee of Public Accounts. “Promoters of ‘boutique’ tax avoidance schemes…are running rings around HMRC,” said Hodge, “HMRC should publically name and shame those who sell or use tax avoidance schemes in order to discourage such activity.” More...
Contractors and their clients avoiding tax to be barred from public sector contracts
Contractors, and contractor clients, using tax avoidance schemes will be banned from being awarded government contracts. New rules created by the Treasury will come into force from 1 April 2013 “will require potential suppliers to notify contracting departments of their recent tax compliance history.” Contractors will have to admit to any successful challenges by HMRC under the incoming General Anti-Abuse Rule (GAAR) and their past participation in failed tax avoidance schemes.
Oil and gas contractors will receive a contract boost from the new Mariner field
Oil and gas contractors look set to receive a contract boost following the Department of Energy and Climate Change’s (DECC) approval to allow Norwegian state energy company Statoil to develop the Mariner heavy oilfield in the North Sea. Statoil estimates that 700 new contracts and jobs will be created. Mike Tholen, Oil & Gas UK’s economics director, notes that: “Mariner requires pioneering technology and its development is creating hundreds of high-skilled, long-term jobs across Britain.”
Contractor demand in Scotland reaches two-year high, outperforming rest of UK
Contractor demand in Scotland increased during January 2013, with billings reaching a two-year high and the fastest rise in vacancies for eight months according to the latest Bank of Scotland Report on Jobs. Recruiters report that “greater client demand and improvements to the wider economy” underpin the surge in activity. Bank of Scotland chief economist Donald MacRae highlighted the significant increase in permanent roles for engineers and IT professionals, which he believes suggests “a modest pick-up in activity in this crucial sector in the coming spring”. More...
Contractor numbers increase alongside employment growth
Contractor numbers increased by 25,000 in the three months to the end of December 2012, with self-employment rising to 4.215m from 4.191m in the previous quarter. The latest Labour Force Survey from the Office for National Statistics also shows that the number of people in employment also grew by133,000 during the period. The growth in self-employment was entirely due to more full-time workers, with the number of part-time self-employed falling by 10,000. More...
Late-filing contractors to receive penalty notices from HMRC
Contractors who filed their self-assessment tax return after the 31 January 2013 deadline, or who have yet to file at all, will be on the receiving end of one of 850,000 penalty notices from HMRC sent out this week. According to AccountancyAge’s Calum Fuller, this first tranche of letters from HMRC will demand £100 fixed penalties from defaulting taxpayers, raising an estimated £85m. Contractors face daily fines of up to £10 a day if they fail to pay after three months past the deadline. More...
Contractors with funds held offshore in the Isle of Man face disclosure to HMRC
Contractors with bank accounts held with Isle of Man financial institutions face disclosure to HMRC following a new deal struck between the UK and Isle of Man governments. Under the terms of the deal, HMRC will automatically receive financial information on UK taxpayers with Isle of Man accounts. Contractors have until September 2016 to voluntarily disclose any assets and pay any tax owed, plus a fine, and they may escape prosecution by HMRC.