Off-payroll working rules from April 2020

The off-payroll working reforms were brought in for the public sector from 6 April 2017 and will be extended to the private sector from 6 April 2020. However, the new rules as proposed in Finance Bill 2019/20 will apply to all engaging organisations in the public sector, but only to medium and large-sized engaging businesses…

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What is a P800 tax calculation?

A P800 tax calculation is issued if, according to HMRC’s information, the taxpayer has underpaid or overpaid tax. The first wave of these annual tax reconciliations for 2018/19 started to land on doormats on 17 June 2019. Who gets a P800? Following the end of the tax year, HMRC carries out a reconciliation for anyone…

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How Class 1 National Insurance is calculated for directors

Special rules apply for directors for class 1 national insurance contributions (NIC). All directors, regardless of their actual pay interval, have an annual earnings period. This means that the class 1 contributions for the year are calculated by reference to the annual NIC thresholds, rather than by reference to those for the pay interval. A…

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Changes to form P11D reporting

P11D dispensation agreements were abolished for the 2016/17 tax year onwards and replaced by a general expense exemption meaning reduced reporting requirements for those employers that previously did not hold a P11D dispensation. Understanding and abiding by the revised rules in these situations is important, to ensure ongoing compliance and avoid penalty. A dispensation previously removed the…

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Have you considered starting your own business?

Individuals are increasingly considering giving up employed work positions and going freelance full time. A fresh start and can give rise to new ideas, new goals and new plans both at home and at work. And if you get that heart sinking feeling when you think about going back to work perhaps it’s time to take…

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What is ‘Open Banking?’

You may have heard the term ‘Open Banking’ and wondered what it is and whether it will affect your business. If so here is a simple explanation. Open Banking is a series of UK reforms which focus on how banks handle your financial information. (It was introduced by Europe’s Second Payment Services Directive (PSD2) which…

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Off-payroll working in the private sector

On Budget day 1999, then chancellor of the exchequer Gordon Brown announced that measures would be introduced to stop the avoidance of tax and National Insurance contributions through the use of intermediaries such as personal service companies (PSCs) and partnerships in circumstances when an individual worker would otherwise be an employee of the client or…

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Guide to Making Tax Digital

There has been much written in the press and online about Making Tax Digital (MTD) and yet in a recent survey over 40% of business owners said they didn’t know if and when it would impact their businesses. In this paper I have set out – with as little jargon as possible – what MTD…

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