Worldwide Disclosure – Time running out

Cessation of Worldwide Disclosure Facility Tax payers have a few weeks left to take advantage of The Worldwide Disclosure facility. The Worldwide Disclosure, which opened in September 2016 is closing from 30 September 2018. The disclosure dealt with income and gains which have an offshore element in them. From 30 September 2018, there will be new legislation to replace the Worldwide Disclosure, called "Requirement to Correct".  Individuals disclosing undeclared income and gains will subject to harsher penalties under this regime. The Financial Secretary to the Treasury, Mel Stride MP, said: Since 2010 we have secured over £2.8bn for our vital public services by tackling offshore tax evaders, and we will continue to relentlessly crack down on those not playing by the rules.This new measure will place higher penalties on those who do not contact HMRC and ensure their offshore tax liabilities are correct. I urge anyone affected to get in touch with HMRC now. HMRC have stated: "From 1 October more than 100 countries, including the UK, will be able to exchange data on financial accounts under the Common Reporting Standard (CRS). CRS data will significantly enhance HMRC’s ability to detect offshore non-compliance and it is in taxpayers’ interests to correct any non-compliance before that data is received." Worldwide Disclosure Facility is used mostly for foreign income and property. HMRC have stated that "over 17,000 people have already contacted HMRC to notify the department about tax due from sources of foreign income, such as their holiday homes and overseas properties." HMRC have provided examples of what could be construed as offshore assets : art and antiques; bank and other savings accounts; boats; cash; debts owed [...]

By |2018-12-26T13:53:35+00:00September 16th, 2018|Budget, Car benefits, Disclosure, IR35, Law, Small business, Tax Summaries, Uncategorized, VAT|Comments Off on Worldwide Disclosure – Time running out

Holiday pay – Contractors falling foul of IR35

Contractor getting caught by IR35 Rules successfully claimed for unpaid holiday pay The Employment Appeal Tribunal upheld a judge's decision that a general labourer, who was employed for four years before becoming a labour-only subcontractor for the same company, was a worker for the purposes of the Employment Rights Act 1996 and the Working Time Regulations 1998 (SI 1998/1833). The tribunal therefore had jurisdiction to hear his claims for unlawful deductions in respect of unpaid holiday pay. The Case  In Plastering Contractors Stanmore Ltd (PCS) v Mr P Holden (UKEAT), Mr Holden a self-employed sub-contractor claimed holiday pay and won. His task involved general labouring, clearing sites and transporting equipment between sites. He was contacted by a manger who would provide him work at a number of sites. Mr Holden was paid by price or time and no sales invoices were raised by him prior to him receiving payment. There was no obligation for Mr Holden to be offered work or to accept it. He worked almost exclusively for PCS for 16 years. There was no marketing initiative from his side such as researching other contracts. He did not provide a substitute when he could not work due to his wife's appointments, even when he had the right to do so. All protective clothing, with the exception of safety boots was provided by PCS. Therefore Mr Holden was not a client of PCS  but rather he was integrated into PCS's  business. As work from PCS dwindled, Mr Holden left the company without giving any notice. The Legislation In order for his claim for holiday pay to succeed it was necessary for Mr Holden to establish that he was a worker by virtue of the Working Time Regulations 1998 (WTR) and [...]

By |2018-12-26T13:53:37+00:00May 28th, 2015|IR35|0 Comments

HMRC report on IR35 cost

HMRC has published their report on the IR35 cost to the government. In summary the report states that continuing with the IR35 regime is more cost efficient than trying to get it abolished. The administrative cost to the public in continuing with this practice is £16 million, whilst abolishing it would cost the Exchequer £550 million per year. The legislation which has been the source of various controversies is designed to prevent people from lowering their tax bill by not being directly employed. Jason Piper who is the ACCA's tax technical manager and sits on the HMRC's IR35 Forum responded to the figures on the report: "Figures cover the cost to taxpayers of assessing whether or not the complex and often controversial measure affects them directly but what it can’t address is the wider costs to other businesses in the chain of the IR35 compliance process. Agencies and end users will often face an administrative burden of replying to the taxpayer’s requests, while the contractor themselves will often be in limbo until that information is forthcoming." "The wider costs of IR35 are beyond what HMRC has the remit or resources to reasonably investigate but it’s clear that the policy making process needs to address that wider drag on the economy. Government has clearly identified a risk that it wants to address, but it’s important to make sure that the mechanisms used are the best that we can craft. That may mean devoting more time and resource to the underlying design, but that initial spend will be more than repaid in efficiencies further down the line." Piper stated the interaction issues regarding the IR35 cost and how it is interlinked to the society we live in. "We [...]

By |2015-05-31T23:08:21+00:00March 15th, 2015|IR35|0 Comments