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At the IR35 Forum meeting in January 2013, HMRC confirmed that they are scrutinising off-payroll arrangements in the Public Sector and no job titles are to be considered “safe”.

Specific examples of locum solicitors being investigated were discussed during the meeting and it makes commercial sense for HMRC to review higher paid consultants to gain a greater yield of tax. HMRC have targets to meet after all!

IT contractors are also potential targets for HMRC along with other highly skilled professionals.

Is it significant that public sector contractors are subject to scrutiny at the moment?

There is a double whammy for higher paid contractors working in the public sector. Not only will the contractor face a financial penalty if incorrect tax is paid on income generated from the public sector client, but the end client (I.e. the public body engaging the contractor, whether that be the NHS Trust, government department, local council or other publicly funded body) may also face a financial penalty. This certainly helps with HMRC’s targets!

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Limited Company

Trading through a Limited Company has become increasingly popular, due to flexibility, security and tax efficiency.

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Sole Traders

If you’re a sole trader, you’re running your own business as an individual. You can keep all your business’

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Partnership

In a business partnership, you and your business partner (or partners) personally share responsibility for your business.

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Muftal Blog

The biggest change to income tax and National Insurance Contributions since PAYE was introduced in 1944.

 

Tax avoidance – How worried should you be?

 

Public sector contacting and IR35 

 

RTI Penalties – With hard-pressed employers coming to terms with Real Time Information (RTI) filing, the pain is not all over.