Orange Genie News

 

Onshore Intermediaries legislation

Few in the recruitment industry seem to believe the new Onshore Intermediaries legislation is either fair or proportionate to the recruiters identified in the legislation as “Agency 1”. However, for now, that argument has been lost and we are in a new era where the burden of proving that workers are self-employed has shifted from HMRC to the recruiter.

For the past three weeks, I’ve been dealing with a growing number of requests from recruitment agencies, asking for us to evidence that we comply with the requirements set out in the recent changes to legislation concerning offshore and onshore intermediaries.

The risks involved, should your business fall foul of these rules, have been widely documented already so engaging the services of a trusted partner is critical to your business.

For the past three weeks, I’ve been dealing with a growing number of requests from recruitment agencies, asking for us to evidence that we comply with the requirements set out in the recent changes to legislation concerning offshore and onshore intermediaries.

The risks involved, should your business fall foul of these rules, have been widely documented already so engaging the services of a trusted partner is critical to your business.

Has your accountant failed to file your Self-Assessment return on time?

Were you given little or no notice of the amount of tax you owed on 31 January?

Do you feel your tax bill was too high and that your accountant should have given better tax planning advice?

If you area freelance contractor and you missed Friday’s filing deadline for your Self-Assessment return, it’s not too late to limit the damage. Any late return will now automatically attract a late filing penalty of £100, irrespective of the tax due but there is no reason for your penalties to increase.

Two thirds of investigations yielded a result for Her Majesty's Revenue and Customs.

HMRC conducted 5 times as many investigations into those it suspects of abusing the IR35 rules on tax and national insurance for contractors this year compared to last. There were 256 cases in 2012/13, compared to just 59 investigations into IR35 in the previous year. 
 
The IR35 rules were introduced by HMRC to target those falsely registering as self-employed for tax purposes. 
 

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