The following Employment Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
As from 6 April 2017, where a public sector body uses the services of an individual supplied by an intermediary such as a personal service company (PSC) or a managed service company (MSC), that public sector body and any other intermediary in the supply chain, such as an employment agency, have to consider whether the public sector version of the IR35 rules applies. See Simon’s Taxes E4.1040.
A report (Review of the changes to the off-payroll working rules) was published in February 2020 and has resulted in a number of tweaks to the rules from 6 April 2021 as well as confirmation of HMRC approaches to compliance with the rules.
From April 2021, these rules will apply to large and medium businesses in the private sector. From this date, there will be a number of tweaks to the rules that will apply to both the private and public sectors.
Normally, where a worker provides their services to an end client through an intermediary such as a PSC or an MSC, it is up to the intermediary to decide whether or not the worker would be an employee or office-holder of the client if the worker were engaged directly. If the worker would be an employee or office-holder (often referred to as being ‘caught by IR35’), then the PSC or MSC has to calculate the deemed employment payment which it is treated as making to the worker and it has to account to HMRC for income tax and NIC in respect of the deemed payment. For more on these rules, see the Anti-avoidance rules ― off payroll working (IR35) and MSCs ― overview guidance notes.
Where the end client is a public sector body, the decision as to whether the worker would be an employee or office-holder if engaged directly rests instead with the public sector body.
The responsibility for calculating a payment deemed to be made to the worker (the ‘deemed direct
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
There are several sets of provisions in the Taxes Acts which relate to ‘close’ companies, most of which are anti-avoidance measures aiming to catch transactions between those companies affected and their owners, where there may otherwise be a tax advantage. Broadly speaking, most owner-managed or
This note offers guidance in respect of the administration of company tax returns. If a company or organisation is subject to corporation tax they will have to complete and file a company tax return for each accounting period. A company or organisation must, in the main, file a return even if they
This guidance note provides details of quarterly instalment payments (QIPs) for corporation tax purposes and which companies need to pay their tax liabilities in this manner.Generally, corporation tax is payable nine months and one day after the end of the relevant accounting period. However, large
Duty to prepare trust accountsUnder the laws of England and Wales, trustees have a duty to account to the beneficiaries for their financial administration of the trust fund. This duty is established by a substantial body of case law. In the case of Armitage v Nurse, Millett LJ stated:“Every
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.