Articles and information in relation to UK Payroll for business, employers and employees.
More than £1 billion has been recovered from the proceeds of crime and tax offenders since the formation of a specialist HM Revenue and Customs (HMRC) fraud squad five years ago. Launched in April 2016, the department’s Fraud Investigation Service (FIS) has now recovered assets equivalent to funding around 20,000 NHS nurses for an entire … Continue reading HMRC fraud squad takes back £1 billion from offenders
Naming tax avoidance promoters As part of the approach to support taxpayers to steer clear, or move out, of tax avoidance HMRC plans to publish details of those involved in the supply of mass-marketed tax avoidance schemes and details of the schemes they are selling. This will enable taxpayers to spot avoidance schemes more easily … Continue reading HMRC to name tax avoidance promoters
Rogue directors who dissolve companies and avoid paying liabilities to staff, creditors and the taxpayer can now be disqualified from being a director. The Insolvency Service has new powers to tackle unfit directors who dissolve companies to avoid paying liabilities. The Rating (Coronavirus) and Directors Disqualification (Dissolved Companies) Act helps tackle directors dissolving companies to … Continue reading Crackdown on directors who dissolve companies to evade debts
As part of the Autumn budget 2021 announcements, the government are progression new measures to clamp down on promoters of tax avoidance schemes. The measure is targeted at the most persistent and determined promoters and enablers of tax avoidance. The proposed legislative changes are designed to clamp down on the supply of tax avoidance arrangements. … Continue reading Clamping down on tax avoidance
The traffic commissioner for the West Midlands, Nick Denton, recently held a public inquiry into Mafuwer Logistics Ltd. The company was granted a standard international licence for three vehicles in December 2020. The traffic commissioner found that almost all of the company’s financial resources had been provided by a £50,000 bounceback loan (BBL) in May … Continue reading Improperly obtained bounce-back loan
HM Revenue and Customs (HMRC) have issued new guidance to help agencies and employers reduce their risks of using umbrella employers who are operating tax avoidance schemes. Tax avoidance schemes Disguised remuneration schemes These schemes claim to prevent some payments being taxable. They describe taxable earnings paid for doing a job as something that is … Continue reading Reduce risk of using umbrellas who operate tax avoidance schemes
HM Treasury have published two consultations in relation to Anti-Money Laundering: 1. Changes to the Money Laundering Regulations 2. Reviewing the UK’s anti money laundering and terrorist financing regulatory and supervisory regime Both consultations are open for responses until 14th October 2021. More information on all of HMRC’s anti money laundering guidance for businesses can … Continue reading Money Laundering Consultations launched
The HMRC annual Measuring Tax Gaps publication estimates the difference between the total amount of tax expected to be paid and the total amount of tax actually paid during the financial year. The majority of taxpayers pay the tax that is owed. This year’s estimated tax gap at 5.3% represents £35 billion compared to 5% … Continue reading Tax gap low at 5.3%
Union body warns use of umbrella companies could spiral post-pandemic New TUC research estimates that half of agency workers work for umbrella companies The TUC has called for umbrella companies to be banned. The union body says the scandalous workplace practices associated with umbrella companies have “no place in modern Britain”. An umbrella company is … Continue reading TUC urges ban on umbrella companies – end exploitation of workers amid scandalous workplace practices which have “no place in modern Britain”
Reforms to the tax system that will make it easier for small businesses to fill out their returns have been announced by the government 20th July 2021. Self-employed and small businesses are set to benefit from simpler tax reporting ruleNew measures to clamp down on promoters of tax avoidance, including supporting taxpayers to steer clear … Continue reading Simplified tax reporting for self-employed and small businesses
Leicester payroll services boss banned for orchestrating multi-million pound tax avoidance scheme, while failing to justify £37 million expenditure in 11 months Scott Rooney, of Leicester, was appointed sole director of Magnetic Push Limited in February 2017. The company provided payroll services, trading from a serviced office in Liverpool, and was previously known as The … Continue reading Payroll boss in tax avoidance scheme 11-year ban
The G7 has agreed (5th June 2021) to back an historic international agreement on global tax reform which delivers on the Chancellor’s promise for big international companies to start paying their fair share. G7 Finance ministers strike seismic agreement on global tax reform meaning the largest multinational tech giants will pay their share of tax … Continue reading G7 Agrees Historic Global Tax Agreement
Question To ask the Chancellor of the Exchequer, whether HMRC uses real time information to close down tax avoidance schemes. Answer Answered on 27 May 2021 HMRC identify new avoidance schemes and the promoters behind those schemes using a range of data and intelligence, including real time information from PAYE systems. HMRC actively monitor the … Continue reading RTI data and Tax avoidance
HMRC have issued guidance (13th May 2021) to both and help warn business to be aware of risks within Labour supply chains. Why assure the labour supply chain Failing to take reasonable action to make sure that the supply of labour is legitimate can lead to significant legal, financial and reputational risks, liability for unpaid … Continue reading Supply chain due diligence to assure labour supply chains
HMRC have issued information on fraud being committed by a number of Mini Umbrella Companies. HMRC claim that every business which either places or uses temporary labour should be aware of the potential dangers posed to by mini umbrella company fraud. Not only can a fraudulent supply chain lead to reputational and financial damage to … Continue reading Mini Umbrella Company (MUC) fraud
HMRC have published further guidance (29th April 2021) to clarify the position on agency and contractors who are employees of umbrella organisations. Working through an umbrella company Those employed by umbrellas can find out about how and what they will be paid if they are an agency worker or contractor and work through an umbrella … Continue reading HMRC publish guidance for those employed by umbrellas
Dear Payadvice.U.K. Our consultation on 'Raising standards in the tax advice market' was published on 23rd March 2021. This is your chance to have your say. We need to understand the impact these proposals would have on taxpayers, businesses, the insurance industry and the wider tax advice market, so your views are really important to … Continue reading Consultation on ‘Raising standards in the tax advice market: professional indemnity insurance and defining tax advice’
The Low Incomes Tax Reform Group (LITRG) has published a research report looking at the use of ‘umbrella’ companies and other labour market intermediaries in the UK. The factual and technical report also considers the nature and scale of disguised remuneration schemes. It is intended to help increase public knowledge of how labour market intermediaries … Continue reading ‘Umbrella’ companies under the spotlight
HMRC have issued the April 2021 Employer Bulletin, again, packed full with information. In this month’s edition of the Employer Bulletin there are updates and information on COVID-19 updates and information:Coronavirus Job Retention SchemeVAT deferral new payment schemeNew one-off payment of £500 to support working households receiving tax creditsExtension of filing dates for internationally mobile … Continue reading HMRC April 2021 Employer Bulletin
Dear Payadvice, HMRC's Anti Money Laundering Supervision (AMLS) team is changing its name to Economic Crime Supervision (ECS) from 1 April 2021. This change does not affect our responsibilities under the Money Laundering Regulations or how we will interact with you. You may continue to see AMLS referenced in correspondence from us during April whilst the changes take effect. You … Continue reading HMRC Anti Money Laundering team change name to Economic Crime Supervision
The government has published 23rd March 2021 a series of tax documents and consultations in a move to strengthen policymaking and help create a more trusted, simple and modern tax system. government publishes more than 30 tax updates, consultations and documents to strengthen policymaking and modernise UK tax systemlarge number of the announcements form a … Continue reading Government strengthens tax policymaking with over 30 updates, consultations and documents published
Dear @PAYadvice, HMRC's regular Talking Points provide information, guidance and tips to help you to understand tax issues. We have more Talking Points webinars coming up. There are a limited number of spaces, so save your place now. Penalties for enablers of defeated tax avoidance: This webinar gives an overview of the penalties for enablers of … Continue reading HMRC Talking Points
Dear @PAYadvice, Our Employer Bulletin (December 2020, Issue 87) includes a host of useful information including the extension to the Coronavirus Job Retention Scheme, VAT deferral and VAT reverse charge measures for the construction industry, Virtual Christmas Parties and Brexit transition updates. There’s also a timely reminder about how to report PAYE Real Time Information … Continue reading December 2020 HMRC Employer Bulletin
The IT contractor - Duncan’s story Duncan is a 55-year-old IT project manager. He’s married with two children and lives in London. When he started working as a contractor, he chose to use an umbrella company to help him manage his payroll admin. He found one through a comparison website. Duncan didn’t ask enough questions … Continue reading Failed tax avoidance – the IT contractors story
HMRC have shared stories of contractors who have been caught up in tax avoidance schemes. They were promised higher take-home pay, lower tax bills and less paperwork. Instead, it cost them time, money and stress. Tanya is a single parent. She works as a critical care nurse at her local hospital. She found her job … Continue reading The nurses story – failed tax avoidance
The Advertising Standards Authority @ASA_UK have published an enforcement notice to ensure businesses who advertise tax avoidance schemes are upfront about the risks involved This Enforcement Notice is jointly-issued with HMRC and provides guidance to promoters of tax arrangement schemes. The notice applies to websites which advertise a tax arrangement scheme to UK individuals or … Continue reading Enforcement notice – advertising tax arrangement schemes
HMRC have updated their guidance 19th November 2020 about paying what is owed to HMRC and added new information about providing settlement information. The #loancharge deadline passed on 30th September 2020. Guidance is now available for those who want to settle all their tax liabilities related to disguised remuneration and loans subject to the loan … Continue reading Disguised remuneration: settling your tax affairs #loancharge
The Government has published (Thursday 12th November 2020) responses to calls for evidence in the market for tax advice and the tackling of promoters of tax avoidance. Raising standards for tax advice The Government is publishing a Summary of Responses and Next Steps from the call for evidence on raising standards in the market for … Continue reading Raising standards for tax advice – Tackling promoters of tax avoidance
Off-Payroll Working Rules (IR35): education and support to help prepare for April 2021 changes Medium or large-sized non-public sector organisations and contractors need to start to prepare for the changes to the off-payroll working rules. These changes were legislated for in the recent Finance Act and will come into effect on 6th April 2021. Changes … Continue reading Off-Payroll working rules (IR35) – are you prepared?
Please see message sent on behalf of the HMRC’s Fraud Investigation Service, Threat Response Unit. This article has been written to provide you with material to share with your membership / readership in relation to the Mini Umbrella Company Fraud risk. Every business which either places or uses temporary labour should be aware of the … Continue reading Fraud awareness – Mini Umbrella Company (MUC)
Message sent on behalf of the HMRC Counter Avoidance Team. There’s still time to file, pay or discuss a Time to Pay arrangement With the 30 September 2020 deadline approaching, customers with loans subject to the Loan Charge should be mindful of any actions they need to address well in advance of the 30 September … Continue reading Loan charge deadline 30th September
HMRC Chief Executive appears at Public Accounts CommitteeJim Harra, HMRC’s Chief Executive and First Permanent Secretary, appeared at the Public Accounts Committee (PAC) today. You can watch his appearance. Jim Harra, Public Accounts Committee Jim was asked to comment on a range of topics including the tax gap, EU transition the and the Coronavirus Job … Continue reading Tax Gap & the Job retention fraud
HMT by PSP (c)2019 Customer Stakeholder Engagement Team| HM Revenue & Customs have provided the following: Back in September 2017, legislation was introduced which can hold a corporate liable if it fails to prevent any associated person from facilitating tax fraud. This is known as the Corporate Criminal Offences (CCO). It is easy to see … Continue reading Corporate Criminal Offences – more than just a legislative tool, and why you should care
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