UK Immigration points-based system
From 1st January 2021 a new UK immigration points-based system will come into force. A total of 70 points is required to apply for the Settlement Scheme.
The UK’s points-based immigration policy statement (published 19/02/2020)
Keep posted for more information.
Budget 2020
Former Chief Secretary Rishi Sunak was promoted to Chancellor after Sajid Javid’s resignation last week. The cabinet reshuffle happened less than a month before the Budget 2020 which will be delivered on 11th March. Off Payroll reform and Domestic Reverse Charge are hot topics in Construction and the much atticipated Budget will confirm whether the legislation changes will be inforced, amended, pushed back or abolished.
Keep posted for more information.
Off-Payroll (IR35) Letters to Companies
January 2020 HMRC issued 43,000 letters to companies warning of the impending Off-Payroll reform for public sector. The changes are likely to go ahead from 6th April 2020 and the long awaited Budget on 11th March 2020 will confirm whether the reforms will come into force. This will affect any sub-contractor who performs their services personally through their Limited Company. The change in to ‘Off Payroll’ rules will result in the liability shifting from the Limited Company to the ‘Fee Payer’
Do you pay PSCs directly? Are you worried about the reform?
Contact us today for more information and advice. 01992 663 219
Criminal Finance Act
On 30th September 2017 the Criminal Finances Act 2017 (the ‘Act’) came into force. The Act introduced a new corporate offence of failure to prevent the facilitation of tax evasion. The Act is made up of four parts:
• Part 1 – The proceeds of crime, money laundering, civil recovery, enforcement powers and related offences
• Part 2 – Money laundering and asset recovery powers will be extended to apply to investigations under the TACT (Terrorism Act 2000) and POCA (Proceeds of Crime Act 2002)
• Part 3 – Created two new corporate offences for failure to prevent facilitation of tax evasion
• Part 4 – Minor and consequential amendments to POCA and other Acts
Reasonable procedures to prevent the facilitation of tax evasion must be in place in order to establish a defence for ‘failure to prevent’. With an unlimited fine and criminal record for corporations if convicted, the whole supply chain is under scrutiny, irrespective of sector and size.
Like the Bribery Act 2010, the aim of the new offence is the make it much easier to convict corporations for the facilitation of tax evasion by their associated persons or employees.
The following example demonstrates how a corporation will fall failure of the new offence if all three steps are established:
1. A tax payer commits tax evasion (contractor or payroll company)
2. A third party commissions and criminally facilitates (the facilitator) the offence (recruitment consultant)
3. The facilitator associated with the corporation (recruitment consultant’s employer)
The criminal intent on the part of the tax evader and the facilitator must be established however the corporate can be convicted even if they did not benefit from the offence.
The offence is a very strict liability offence. If stages one and two are commented then the relevant body will have committed the offence, unless it can demonstrate it has put into place robust preventative procedures and can be liable for an unlimited fine. There are six principles within the guide to prevent:
1. Risk assessment
2. Risk based prevention procedures
3. Top level commitment
4. Due diligence
5. Training and communication
6. Monitoring and review
In short, if you are engaging with a company who willingly offer and process ‘kickbacks’, think again as you can and probably will fall fail of the new legislation.
Autumn Budget 2017 – What to expect
The new Autumn Budget will replace the Autumn Statement this year and will be delivered on Wednesday 22nd November 2017. The Autumn Budget outlines the fiscal forecasts from the Office for Budget Responsibility (OCR), planned tax changes for Tax year 2018/2019 and future years.
What are we expecting from the Autumn Budget? We won’t have a concrete answer until the 22nd November, however in response to the UK Spring Budget, there is likely to be a shake up with tuition fees, student loans and pensions. Along with a pledge from Hammond to inject £10 billion of funding for the Help to Buy scheme. Stamp Duty is seen as a deterrent to home movers and puts pressure on the UK housing market, therefore there have been calls for stamp duty to be removed for older homeowners. This would encourage people to downsize and free up the much needed space for younger families. Pension tax relief could also be under the microscope as currently relief is linked to the income tax rate of a saver, meaning higher tax payers receive 40% relief, whereas basic rate payers are given 20% relief.
We will publish an overview of the budget in due course – in the mean time the following link provides more information Autumn Budget 2017
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