HMRC and what we must disclose
Due to new HMRC guidelines introduced in April this year, we as an agency need to now report quarterly gross payments being made to any limited company or umbrella company contractors who work with a client through IC Resources. This is the same for all agencies within the UK and if you are currently working with IC Resources you will have already been contacted for information that we now need to have on record in preparation for these audits.
How will the regulations help HMRC?
The regulations will provide HMRC with information that will enable it to decrease false self-employment and abuse of offshore working. This will help HMRC to:
- support intermediaries that comply
- penalise intermediaries that don’t comply
- make sure the right tax and National Insurance is paid by people working through intermediaries
- reduce unfair commercial advantage
F
or more information on the guidelines, please read this HMRC article.
or more information on the guidelines, please read this HMRC article.
There is obviously some concern from contractors as to how this will affect them and what this means long term for contractors and protecting their business finances. Essentially only time will tell as to how this information may shape new guidelines and contractor legislation in future, however in the short term, the onus is on the recruitment agencies to provide this information, and as long as your tax deductions are in-line with financial regulations and are seen as a true contractor, there is no need for any concern.
If you have any questions about contracting, please do contact us.
PRINCIPAL CONTRACTS CONSULTANT
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