Orange Genie News

In the wake of the Criminal Finance Act, which came into effect on 30th of September 2017, we’ve seen a number of leading agencies tightening up their compliance policies. Some are now insisting on respected industry accreditations as a prerequisite for inclusion in their preferred supplier lists. It’s clear that recruiters are more concerned than ever about compliance, with an emphasis on industry accreditation. We believe this is a positive development, but it still deserves some scrutiny.

On the 29th September 2017, HMRC published this article regarding the court’s decision in the high-profile tax-avoidance case involving Rangers Football Club. In their article, HMRC state their intention to use the ruling to take action against other disguised remuneration schemes.

The reform of off payroll working in the Public sector left many contractors in a situation where some of their contracts will be outside, and some inside IR35. This leaves them with a dilemma, the attraction of operating through a Limited company maximises if the contract is Outside IR35 and contractors can take advantage of a dividend income.

Recently, Orange Genie Umbrella have spoken to a number of nursing agencies who did not expect to pay VAT on our invoices. This is because the supply of nurses by agencies is usually covered by the Nursing Agencies Concession, and VAT is not usually due. These agencies have, quite reasonably, assumed that the concession would still apply when their nurses are employed by umbrella companies.

Back in early July, we reported that Mike Gibson, a contractor who instigated a crowd-funded legal challenge to the Public sector reform of IR35, had exceeded his target of £10,500 in donations. At the time Mr. Gibson was about to instruct tax barrister Michael Paulin to begin research into possible grounds for challenging the IR35 reforms.

It now seems that this research is not going all Mr. Gibson’s way. Addressing campaign donors, Mr Gibson admitted that the chances of success look “increasingly dubious” as “every possible angle has already been looked into by many others”.

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