News

IR35 investigations triple

It has been reported that the number of IR35 investigations undertaken by HM Revenue & Customs has tripled in the first half of this tax year.

The IR35 tax legislation is to prevent people obtaining favourable tax treatment by providing services through a company who would otherwise be considered to be employed. This area of tax can be complicated and often very subjective.

With HM Revenue & Customs being given greater targets to collect more tax revenue for the government, Inspectors will be looking at this area of tax closely.

Feel free to give us a call if you require an assessment on any future contracts. If you are currently engaged in any contracts where IR35 may be an issue, it would be wise to protect yourself with our IR35 Tax Loss Insurance (www.adviancepartnership.co.uk/services/financial-planning).

 

RTI (Real Time Filing)

RTI is the new way of preparing and filing payroll records. This will come into effect on the 06 April 2013.

We have found many clients are not prepared for the introduction of this new system, the additional information to be reported or the changes in payroll forms.

There have been many free information packs that have been developed to cover this topic. Those that carry out their payroll in-house are advised to obtain literature prepared by their software provider as this will be tailored to their needs.

HM Revenue & Customs have a helpful link regarding the changes and can be found at the following page, http://www.hmrc.gov.uk/payerti/getting-started/index.htm

Feel free to request a call back using the website leaving your name and preferred contact details if you have any questions to run through. We do stress however that we are here to help you. We cannot learn the changes for you and an investment in your time regarding the changes will be needed.

Direct sellers and HMRC

Due to the current economy over the last few years, an increasing number of individuals have been looking at direct selling of goods as a way to supplement their existing income or to reduce their working week.

The increased use of the internet and websites like Ebay has made it very easy for people to make a profit on the sale of goods due to the low overheads. Events and parties to demonstrate products in the customers’ homes have also increased in popularity.

Individuals carrying out these activities are deemed self-employed and are legally required to notify HM Revenue & Customs, calculate their tax and make payment accordingly.

Those who have not fully reported their financial affairs will be interested in hearing HM Revenue & Customs are offering favourable interest and penalty rates in exchange for full declaration by the 28 February 2013.

If this affects you or someone you know, feel free to request a call back using the website leaving your name and preferred contact details.

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