Compliant Umbrella Companies Take away the Strain as Paying the Right Tax is as Essential as Ever.
Date: October 26, 2009
Stephen Timms, UK Treasury minister, has announced that there will be changes to tax legislation with immediate effect to stop avoidance tax schemes recently notified to HM Revenue and Customs (HMRC).
The changes of new legislation are focused to prevent sideways loss relief with the only purpose of tax avoidance and double tax relief legislation where tax avoidance schemes have also been observed by HMRC.
Timms has stated in a written ministerial statement that “it is right that all taxpayers pay their fair of share, however there is a minority that continue to seek ways to avoid paying their share. This is unacceptable. It is unfair on the majority of taxpayers, undermines fiscal sustainability, and reduces funding of public services. This government will not tolerate tax avoidance or tax evasion in any form, and will act promptly to tackle both of these.”
The Professional Contractors Group (PGC), which represents freelances and contractors across the UK has express their concern to avoidance guidance news published last week by the Daily Telegraph under the headline of” Tax inspectors to clamp down on people before they break the law “Chris Bryce, Chairman of PCG said “Clearly if this is a new departure for HMRC we are very concerned. HMRC must act within the laws of land. Our legal advice is that if HMRC ever did take anything to court on these grounds it would be thrown out and fined heavily”.
While until now tax avoidance could have been considered as a respectable aspect of business planning; now tax avoidance is seen as way to ensure that less tax is paid as required by law. Tax avoidance is considered tax evasion with legal repercussions and the practice is considered as anti-social and unethical conduct for any professional person. Compliant Umbrella companies are without doubt the primary solution for independent contractors allowing them to focus on their contracts whilst their umbrella company keeps abreast of legislation and tax requirements. Umbrella companies like OrangeGenie will ensure that contractors and freelancers tax payments comply HMRC guideline, whilst staying as tax efficient as possible.
