HMRC are cracking down on tax avoidance especially within our industry.
The government have committed £900m to tackle tax avoidance this year especially targeting umbrella companies and offshore trading companies also with an emphasise especially being placed on self employed within the industry and those operating under so called legitimate expense schemes. The government have recently laid out what is acceptable and what isn't. That is to say that a person claiming expenses for travel or subsistence under a Salary Sacrifice arrangement that brings there wages under the national minimum of £6.19ph is acting illegally. Likewise anyone putting through expenses that are not warranted such as claim for travel when they are not travelling or subsistence when they are not away from home long enough to claim this subsistence are also being clamped down on. The HMRC will be looking to bring companies to task who are currently working outside the tax parameters. This will have far reaching implications affecting not only the umbrella companies who are operating these schemes but also the individuals who may have to pay back vast amounts of unpaid back tax. Likewise the criteria for self employed has changed and you have to prove that you are legitimately self employed and following the necessary self employed guidelines including the ability to pay outstanding tax at the end of the year, with a qualified accountant to file your returns. With Real Time Information being introduced by the HMRC companies and individuals not paying sufficient tax will be found out immediately and investigated they will then brought to task as in the recent case involving Reed. We welcome these measures as a fully compliant agency and one that has been on the RTI pilot scheme. If anyone needs further advice on this delicate subject being a client or employee then please contact us at Personell Solutions in confidence.