HMRC’s own IR35 data shows the taxman continuing to waste taxpayers’ cash
Fresh IR35 data obtained by ContractorCalculator on HMRC’s performance in 2012-13 shows the taxman’s specialist teams are losing money enforcing the tax, and also wasting taxpayers’ money. “Taxpayers continue to subsidise this IR35 loss-leader that we know is phony because the tax is not bringing in any revenue from other sources,” says ContractorCalculator CEO Dave Chaplin. “HMRC has simply been unable to substantiate its claim that IR35’s deterrent effect generates £550m of tax.” More...
Contractors should steer clear of HMRC’s Contract Review Service
Contractors should avoid using HMRC’s Contract Review Service, as new IR35 guidance confirms that a dispute over the taxman’s findings could pitch contractors into an IR35 inquiry. “There is no benefit, and potentially plenty of harm, to be gained when using the ‘service’,” highlights ContractorCalculator CEO Dave Chaplin. “Can we seriously believe that HMRC can erect and maintain strong enough internal ‘Chinese walls’ that the local compliance officer won’t receive the nod from a review service colleague when a contractor is found inside IR35?” More...
Contractors’ views sought on a range of new expenses and benefits reforms
Contractors and service providers are being asked for their views on three new government consultations on simplifying expenses and benefits. The consultations include proposals developed by the Office for Tax Simplification (OTS) in a report submitted to government in January 2014. A fourth major consultation on travel and subsistence is expected later in 2014. If adopted, the proposals so far known could significantly reduce administration and compliance costs, for limited company contractors and umbrella contractor service providers. More...
Women choose contracting for flexibility, men choose it for the money
Female contractors choose a contracting career principally for the flexibility it offers, in contrast to male contractors who focus on increasing their earnings. These are the findings of new research by thinktank Demos, reported by the Guardian’s Katie Allen. It also highlights that the number of freelancing mothers has increased by a quarter over the past two years. “For parents who want to spend time with their children, self-employment can provide the flexibility to ease back into work in a way that many workplaces do not offer,” Demos research director Duncan O’Leary told Allen. More...
Contractors based in Scotland reject independence, shows ClearSky survey
The majority of contractors based in Scotland believe that the country should remain a part of the UK. This is according to new research by contractor accountant ClearSky, which shows that 62.5% of respondents would “vote against independence if the referendum was held tomorrow”. Interestingly, there were some sharp divisions between the core contracting disciplines. Only 44.4% of finance and accounting contractors would vote to stay in the UK, versus 60.9% of IT and technology contractors. More...
Interim management contractors exploiting social media to find contracts
Half of all interim management contractors secured at least one contract via social media during 2013, reports the latest Boyden Interim Management Survey for 2013/14. The survey also highlights that 2013 was “a buoyant market”, with 85% of all interims securing at least one contract during the year. Less positive is the news that the number of female interims is actually declining, from 20% in 2010 to only 12% in 2013. More...
Contractors central to London’s growth over the next five years
Contractors will be at the heart of London’s growth over the next five years. The Confederation of British Industry/KPMG London Business Survey confirms that the technology, creative, professional services and financial services sectors will underpin the capital’s economic growth. These sectors include most of the major contracting disciplines, including IT, media, finance, accounting and other professions. “The technology and creative industries have shot up the ladder as some of the fastest-growing sectors in London,” says CBI London Director Lucy Haynes, “with the majority of businesses seeing them as holding the key to the capital’s future growth.” More...
IT contractors will be the enablers of future bank competitiveness
IT contractors hold the keys to the future competitiveness of the banking sector, according to a new report by Deloitte. Out-Law.com notes that the Deloitte report concludes: “Technology is being used to disrupt the banking sector and poses a threat to the business models of traditional banks.” The increased competition from alternative lenders means that banks must “adapt how they use IT themselves if they want to maintain their position in the market”. More...
Contractor tax reliefs enable tax avoidance, believes PAC chairman Hodge
Tax reliefs designed to assist contracting businesses are the root of tax avoidance schemes. This is the belief of Public Accounts Committee chairman Margaret Hodge, who claims in a recent committee report that “however well intentioned, every one of these tax reliefs creates opportunities for avoidance and evasion”. The committee added that: “Tax reliefs are a substantial, complex and poorly managed element of the tax system.” More...
Contractors to benefit from new Small Business Enterprise and Employment Bill
Contractors should benefit from the new Small Business Enterprise and Employment Bill when it comes into force during 2015. Measures to benefit limited company contractors include faster cheque clearance, a commitment to reducing red tape and increasing access to finance for those contractors seeking to grow their businesses. “Small businesses are the driving force of our economy and this bill is part of the government’s commitment to back enterprise and helping firms to start-up and scale-up,” says Skills and Enterprise Minister Matthew Hancock. More...