Tag Archive for Taxes

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How UK businesses should cope with incoming IR35 rules

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Originally written by Timothy Adler on Small Business
With the IR35 rules being reformed within the private sector from April 2020 (essentially mirroring the changes introduced to the public sector back in April 2017), there is a great deal of uncertainty, not only about how the rules will work, but also how employment businesses will practically operate the new legislation.
IR35 puts the onus for deciding whether a freelance contractor is truly freelance or a full-time employee on the recruitment agency. HMRC is on the lookout for what it considers “disguised employment”.
The controversy is that contractors who are considered to fall within IR35 are taxed as an employee, often at the higher rate of income tax, but do not get benefits like paid annual leave or sick pay.
Additionally, employment businesses will be responsible for deducting income tax and employee’s national insurance contributions (NICs) from fees paid, regardless of whether their client pays its bill.
With less than 12 months to go until these changes come into force, it is important that employment businesses who engage contractors through personal service companies (PSCs) understand what practical steps they can take now to prepare in advance.
How to prepare in advance:
Contact current PSCs
Employment businesses should liaise with

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Hot Business News Today

6 tax breaks every small business should know about

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Originally written by David Redfern on Small Business
When setting up and running a small business, it’s very often “all hands-on deck”, with all efforts focused on the day-to-day running of the business. It is easy, therefore, to forget about areas such as tax relief which don’t come under the daily management of your business. However, forego these tax breaks and you could miss out on ways in which you can make your business more efficient and competitive.
A number of tax breaks are applicable to small businesses, some which are industry specific and some which are generally applicable to all SMEs.
If your business meets the HMRC-qualifying criteria, these tax breaks could significantly lower your tax bill, making your business more profitable and efficient with little extra effort on your part.
The following tax breaks are available to SMEs so let’s take a look and see if your business could be eligible:
Employment Allowance
If your business has employees which you pay through PAYE, Employment Allowance is worth up to £3,000 off your employer’s Class 1 National Insurance bill per tax year. It reduces your employer’s National Insurance bill each time you run your payroll until the £3,000 is used up or you reach the

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