`The Chartered Institute of Payroll Professionals
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Tax repayment agency barred by HMRC Published: 21 February 2023 Emailed: 22 February 2023
Tax Credits Ltd (TCL) have been banned from acting as a tax repayment agent by HM Revenue and Customs (HMRC) for breaking anti-money laundering regulations. 11,000 clients of theirs will now receive their tax refunds directly from HMRC, they will be contacted by the end of march and do not need to do anything to initiate refunds. This comes just weeks after HMRC announced plans to change how ta x repayment “assignments” are used to protect taxpayers. This forms part of HMRC’s “raising standards in tax advice” strategy, looking to make things fairer for individuals and provide greater transparency across the sector.
Tax agents should also be aware of the standard for agents published in January 2023, which sets out the minimum standards expected.
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An addition to the tax avoidance schemes list Published: 7 March 2023 Emailed: 8 March 2023
HM Revenue and Customs (HMRC) has updated the list of named tax avoidance schemes, promoters, enablers and suppliers.
Hive Umbrella Ltd (HUL) has been included on the list on 2 March 2023. The scheme user enters an employment contract with HUL, which states the user will be paid at the National Minimum Wage (NMW). The user undertakes work for an agency/end client and submits timesheets to HUL, who invoice the agency for the work done. The scheme user then receives a single payment from HUL which consists of two elements. The first element is the NMW salary with tax and national insurance contributions (NIC) paid. The second element described as ‘advance drawn down’ is not taxed , which therefore affirms as running a tax avoidance scheme using untaxed pay advances. This brings the total amount of separate companies on the list to 36.If you suspect a tax avoidance scheme is being used HMRC strongly urge you to speak to them and avoid contributing to the ever expanding list of non-compliant companies.
You can also read more on what you can do to reduce the risk of using a non-compliant umbrella company and how to find out about the warning signs of mini umbrella company fraud.
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Lineker wins IR35 case against HMRC Published: 28 March 2023 Emailed: 29 March 2023
HM Revenue and Customs (HMRC) has been delivered another blow in the courts as Gary Lineker has been deemed successful in a First-tier Tax Tribunal.
Lineker presented for the BBC and BT Sport under a general partnership, Gary Lineker Media (GLM). The case also involves his former wife, Danielle Bux, previous partner in GLM.
The decision summary states “t he effect of my conclusions is that because there were direct contracts, between the BBC and Mr Lineker and BT Sport and Mr Lineker, the intermediaries legislation (IR35) does not, and cannot as a matter of law, apply.”
With HMRC seeking 3.6 million in income tax and 1.3 million in national insurance, this decision stacks up with Adrian Chiles’ £1 million success .
It is believed HMRC will contest this decision.
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