Category Archives: UK Tax

Reasons to Modernise the Pay as You Earn Scheme The Pay as You Earn Scheme was introduced back in 1944 however much has changed in the UK labour market since then. Back in the 40s and 50s most employers ran a weekly payroll rather than a monthly payroll and made payments in cash rather than […]

The Deputy Prime Minister, Nick Clegg, said that “This site gives you the chance to tell us which laws and regulations you think we should get rid of. Your feedback will inform government policy and some of your proposals could end up making it into bills we bring before Parliament to change the law. We\’ve […]

The Coalition Government has issued an online invitation to the public to nominate the unnecessary laws and regulations they would like to see scrapped. High on any Contractors list will no doubt be the scrapping of Intermediaries Legislation, otherwise known as IR35. In a statement Nick Clegg said \”Too many of the business and voluntary […]

British Retail Consortium Warning Back in May the British Retail Consortium (BRC) warned that a hike in the VAT rate to 20% would cost ‘163,000 jobs over four years and reduce consumer spending by £3.6 Billion’. In a report carried out for the BRC by the Centre for Economics and Business Research (CEBR) the organisation […]

There has been much speculation about the abolition of IR35 since the Queens Speech which included plans to remove barriers to flexible working, promote equal pay and make the taxation system fairer and simpler. The announcement followed the Conservatives letter to the Professional Contractors Group (PCG) on IR35 prior to the General Election and the […]

The research found that: A 20% VAT rate would: Reduce the deficit by £11.3 Billion in year one but would result in 30,000 fewer jobs by the end of that year Reduce consumer spending by: £1.6 Billion in year two, AND £3.6 Billion over four years Result in 163,000 less jobs after four years A […]

In the last financial year to March 2009 the HMRC managed to grow revenue generated through tax investigations to £12.1 Billion, an increase of 7% on the previous year. Overall the HMRC has grown revenue generated through tax investigations by 64% since the creation of the organisation back in 2005. The increase in tax revenues […]

Introduced in 1999 to prevent contractors avoiding tax payments through intermediary firms IR35 has been a compliance nightmare not just for small businesses but also for the HM Revenue & Customs, who have spent a fortune trying to bring and win cases against Limited Company Contractors deemed to be ‘Outside IR35’. Speaking to the Telegraph […]

Submitting an Online Tax Return to the HMRC In order to submit an online tax return to the HMRC you must first register to use the HMRC’s online services. Once information has been submitted the HMRC sends out at activation code (designed for security reasons) by first class post. You will need the code in […]

When invoicing a client it is important to decide at what time the supply of services actually took place. To do this you use what is known as the ‘time of supply’ or ‘tax point’ rules. These rules are especially important when the rate of VAT changes, such as on the 1st January 2010. In […]