Guidance & Legislation Documents
Guidance & Legislation Documents
Please find detailed below guidance and legislation documents relating to the industry. Please click on each title to download.
Issued 30th September 2017 | Part 3 CORPORATE OFFENCES OF FAILURE TO PREVENT FACILITATION OF TAX EVASION, Page 114 to 120 Including Failure of relevant bodies to prevent tax evasion facilitation offences by associated persons.
Issued September 2017
29th November 2016
Government issue draft legislation looking at the Apprenticeship Levy and the implementation of the legislation for any business with a payroll figure of over £3m.
Technical Note 16th March 2016
The Government announced at Budget 2016 that it will reform the intermediaries legislation1 for public sector engagements. Liability to pay the correct employment taxes will move from the worker’s own company to the public sector body or agency / third party paying the company.
Legislation will be introduced in Finance Bill 2017 and will be subject to full consultation. In partnership with stakeholders, HMRC will develop a new digital tool that will make the decision on whether or not the rules should apply as simple as possible and provide certainty.
HMRC recognises that there is strong interest in these proposed changes. This note provides further details on the changes that are being proposed.
26th May 2016: Off-payroll working in the public sector.
As announced at Budget 2016, the government will reform the intermediaries rules for off-payroll engagements of workers who operate through an intermediary, such as their own limited company, in the public sector. This includes engagements through third parties such as employment agencies, outsourcing companies and consultancy firms who supply workers.
From April 2017, where workers are engaged through their own limited company, often known as a personal service company (PSC), responsibility to apply the intermediaries rules will fall to the public sector body, agency or other third party paying the worker’s company. The public sector body, agency or other third party will be liable to pay any associated income tax and National Insurance. Where individuals are working through PSCs in the private sector, the existing rules will continue to apply.
Return to an order of the House of Commons dated 16 March 2016.
Copy of the Budget Report – March 2016 as laid before the House of Commons by the Chancellor of the Exchequer when opening the Budget.
Her Majesty’s Treasury
16 March 2016
Ordered by the House of Commons to be printed 16 March 2016
30th March 2016: Personal Service Companies - Recent Debate
In April 2000 the Labour Government introduced new rules for the tax treatment of personal service companies in the light of concerns that this corporate form was being exploited to avoid tax.
Individuals working in a number of fields often provide their services to clients through a personal service company (PSC), rather than taking up employment with that client. The client pays the service company for the work they have done, without deducting income tax under PAYE or National Insurance contributions (NICs). There are several possible tax advantages to this type of arrangement. First, the range of expenses which the PSC may set against its taxable profits will be much wider than that allowed an employee to set against his taxable income. Second, there will be a cash-flow benefit in avoiding tax being deducted at source each month. Third, the individual may be in a position to receive dividends out of their service company, as an alternative to only being paid a salary, and this form of income would not be subject to NICs.
December 2015: Clause 9: travel expenses of workers providing services through intermediaries
This clause amends the rules in the Income Tax (Earnings and Pensions) Act 2003 (ITEPA) on deductions from earnings made for travel and subsistence expenses, where a worker is engaged through an employment intermediary. The amended rules come into effect from 6 April 2016.
December 2015: This response document follows the consultation published at Summer Budget. The government confirmed at Autumn Statement it will restrict relief for travel and subsistence expenses for workers engaged through an employment intermediary.
December 2015: This applies to workers employed through an employment intermediary, such as an umbrella company or personal service company.
Purpose of the consultation exercise:
This guide sets out HM Revenue and Customs (HMRC) approach in applying the legislation on employee travel.The guide itself has no binding force in law and does not affect any right of appeal by either party.
Tackling offshore evasion: requiring financial intermediaries and tax advisers to notify their customers
The UK has been an international leader in implementing automatic exchange of information agreements, including through its G8 Presidency. The agreements are a key part of the government’s wider offshore evasion strategy. They will increase the effectiveness of HMRC’s compliance activity as well as increasing the deterrent effect for those who attempt to evade UK tax by holding financial assets outside of the UK.