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Three-Month Deferral on VAT & Income Tax Payments

Three-Month Deferral on VAT & Income Tax Payments

Much remains up in the air regarding the government’s package of measures to support businesses during the Covid-19 outbreak. However, one measure that could significantly help limited company contractors is the announcement that Vat and Income Tax payments due between now and the end of June will be deferred for three months. This means that

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Covid-19 Information For Contractors

Covid-19 Information For Contractors

As the government steps up measures to respond to the Covid-19 epidemic, we select updates that might be of particular relevance to contractors. Current Situation On March 23 the Prime Minister placed the UK into lockdown, meaning that people can only leave their homes to shop for essentials, exercise outdoors once per day, receive medical treatment

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Shock Delay to IR35 Reform

Shock Delay to IR35 Reform

In a shock announcement the government has said they will delay the controversial IR35 reforms until 2021. The decision was taken yesterday evening in light of the ongoing spread of Covid-19 in order to help businesses and individuals cope in these difficult times. Steve Barclay, the chief secretary to the Treasury said: “I can also

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Chancellor Dashes Hopes of IR35 Delay in Spring Budget

Chancellor Dashes Hopes of IR35 Delay in Spring Budget

Chancellor Rishi Sunak yesterday confirmed plans set out by the Treasury in its recent Off-Payroll review to go ahead with IR35 reform from April 6th. Although no direct reference was made in Sunak’s speech, the Chancellor spoke of “aggressive” steps to tackle perceived tax evasion. However the budget document (2.178) reads: “The government has recently

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Major IR35 Study Reveals Rife Non-compliance and Confusion

Major IR35 Study Reveals Rife Non-compliance and Confusion

A major study by a leading industry body has concluded that rife non-compliance with the off-payroll reforms is killing off the UK’s flexible workforce, which could have a devastating impact on future business. The study surveyed more than 12,000 contractors to gain insight into the impact of the reforms, making it the largest survey to

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Lords Investigation Contradicts Treasury’s Off-Payroll Review

Lords Investigation Contradicts Treasury’s Off-Payroll Review

In their Off-Payroll Review verdict, the Treasury claims that ‘research on the impacts of the reform in the public sector showed that it did not reduce market flexibility or impact use of contingent labour’. Using tax receipt to assess the impact of the public sector changes, the review concludes that ‘compliance with the rules is

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Lords Inquiry Makes Headway in IR35 Muddle

Lords Inquiry Makes Headway in IR35 Muddle

In a week that’s seen many contradictory messages about the off-payroll reforms, the House of Lords inquiry at least looks to be making some headway. While the new Chancellor promised that the government would go easy introducing the new rules, there’s already strong evidence to the contrary. Last week, the Treasury published the results of

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Rishi Faces Backsplash Over Tea & Tax

Rishi Faces Backsplash Over Tea & Tax

Rishi Sunak is already sparking controversy in his new role as Chancellor. As the seemingly earnest Sunak attempts to navigate the political minefield, it seems that his comments have unintentionally detonated the anger of the British public. Sunak first hit a sore spot when he waded into the off-payroll debacle, attempting to reassure businesses that

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Treasury Confirms IR35 Reforms Will Go Ahead

Treasury Confirms IR35 Reforms Will Go Ahead

In January 2020, the Government announced a review of the implementation of the April changes to the off-payroll reforms and their extension into the private sector. The Review, commissioned by then Chancellor Sajid Javid, was limited in scope to ensuring the smooth implementation of the rules by addressing concerns from affected businesses and individuals. This

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