Contracting Consulting Freelancing Made Easy

When it comes to paying income tax as a contractor it is important that you don’t leave yourself short.  The best advice is to only draw your dividends when you have enough in there to cover your contract accounts. Finances, especially in this tough economic climate, need to be in order.  You should always make [...]

As a contractor, consultant or freelancer running your own company, deciding what you should pay yourself can actually be quite confusing.  It may seem like a daft question but it is in fact one of the most commonly asked questions for those running their own limited company. So what salary should you take? At the [...]

HMRC have this week issued guidance to new contractors who have registered as self employed. The guidance is aimed at those awaiting their first tax bill from HMRC. According to HMRC, when a person starts self-employment, they will be waiting for some time before their first tax bill lands on the door mat so they [...]

The average yield that HMRC get for every IR35 case where a contractor is seen to be a ‘disguised employee’ has increased by 100% according to new information revealed under the freedom of information act. The information has also revealed that HMRC were managing to collect up to £1,700 per IR35 case until 2006, but [...]

HMRC recently highlighted at the IR35 forum four areas that they intend to improve IR35 processes. HMRC have been taking comments on how they are able to improve their IR35 helpline, guidance to contractors, status review and processes of investigation. They have also confirmed that they wish to make improvements to their assessment processes surrounding [...]

March 2008 saw the chancellor announce a crackdown on abuse of loopholes regarding taxation treaties. Double taxation treaties that exist between the UK and other countries became closely watched due to schemes that were enabling people, to avoid, paying tax. Tax avoidance schemes had been put in place to allow contractors and other UK workers [...]

Held on the 6th of May, the IR35 Forum was created by HMRC to enact recommendations made by the office of tax simplifications, they recommended to the chancellor that if IR35 was to be kept then its administration had to be improved. The forum will help to decide which parts need improving and how to [...]

A unified compliance process is about to be tested in a few key locations across the country. The intention is to reduce time and cost of complying with the HMRC’s current rules. “The single compliance process will focus solely on the risks and behaviours identified in cases and throughout the life of the compliance check, [...]

Elaine Richardson is celebrating this week after coming out on top in an IR35 case which threatened to cost her £50,000. Elaine traded under the name ECR Consulting and the judge concluded the case by saying “It is clear to us that ECR is a genuine business and therefore not a target of the IR35 [...]

IR35 legislation, the thorn in many contractors side, looked like it was going to be made redundant at this years budget, as recommendations made by the office of tax simplification (OTS), to combine National Insurance contributions and Income Tax, were considered by the Chancellor George Osborne. This would have meant incentives to exploit the rules [...]