Calculator FAQs Simplify Jobs Professional Passport Approved 2011 As Featured in Contractor Supermarket Approved Umbrella Company IR35 Refer a Friend Login

HMRC to name and shame tax defaulters

From 1st April 2010 HMRC will introduce new legislation which is designed to standardise powers, deterrents and safeguards across the UK Tax system.  These include Compliance checks, new penalties, publishing the details of defaulters and late payment penalties for PAYE, NICs, CIS deductions and Student Loan deductions. 

If you’re a Contractor working through a PAYE Umbrella Company then you are treated as an employee of that Umbrella, and they will take care of your PAYE & NI Contributions.

However, if you are a Self-Employed Contractor then the new penalties could affect you.  With penalties now introduced for not registering as self-employed at the correct time, making payments late or inaccuracies on documents, and the possibility of being publically named and shamed by HMRC for defaulting on your tax, the burden of being self-employed has just got a little bit more onerous.

For more details of this new legislation, see the HMRC Website.

Other News

Retrospective tax nightmare for Contractors using Offshore Trusts
A recent High Court ruling, Huiton v HMRC [2010], could spell financial ruin for those who have used Offshore Trusts in the past.

An Offshore Trust is an arrangement where a Contractor becomes a trustee of an Offshore Company, and gains the income they are due in the form of a trust, typically based in the Isle of Man and takes advantage of the Double Taxation Agreement between the UK and IOM so that income tax is not due on the trust in the UK.
Read more »
Simplify launch AWR Blog
Simplify Umbrella have today launched a Blog to help our Contractors and Agencies discuss the impact of AWR.
Read more »