The Treasury has launched a consultation regarding the abuse of tax reliefs for travel expenses of contractors engaged by umbrella companies and employment agencies. The inevitable reforms could cast doubt over the continued existence of some umbrellas.
Following five years consultation with interested parties, the government finally brought company law up to date through the Companies Act 2006. However, it is only gradually being brought into effect on set dates until final implementation by 1 October 2009.
On 6 December 2007, Nyman Linden became the first accountancy firm to be confirmed as 'NOT' being caught by the Managed Service Company (MSC) legislation
As one of the UK's leading accountancy firms for contractor consultants and freelancers, Nyman Linden approached PricewaterhouseCoopers (PwC) last year to review our business and processes to check we are fully compliant with the new MSC legislation. We selected PwC above the other members of the "Big 4" because PwC was, and still is, the world's leading accountancy and consultancy firm.
The House of Lords today has ruled in favour of Geoff and Diana Jones of Arctic Systems Limited and rejected HMRC’s attack on companies that are jointly owned by one revenue-earning partner and one non-earning partner.
The Chancellor Gordon Brown has announced he will be giving his Budget speech on 21st March this year.
Posted on 22 Feb 2007
Nyman Linden’s view of a crisis in the contracting market
From April 2007, all composite companies are banned and all dodgy umbrella companies brought into order. This virulent attack by the government on Managed Service Companies is a crisis about to hit the contracting market.
HM Revenue and Customs has been granted leave to appeal the verdict in the Arctic Systems case, in a move that will prolong uncertainty for taxpayers until late 2006.
HM Revenue & Customs have decided to petition the House of Lords for leave to appeal against the decision of the Court of Appeal in the Section 660 case of IT consultants Arctic Systems.
Married couples in business together received an early Christmas present this week with a victory in the Court of Appeal in the landmark Arctic Systems case.
The annual staff party is tax and NIC exempt provided the costs, including incidental costs such as transport and accommodation, do not exceed £150 per attendee. This was previously an extra statutory concession. However, a change in the law means the cover is no longer concessionary and is available to directors of Personal Service Companies.
Date Set For Arctic Systems Case at the Court of Appeal
The landmark Section 660 tax case between Geoff Jones of Arctic Systems and HM Revenue and Customs (HMRC) will be heard at the Court of Appeal on 17 and 18 January 2006.
At the end of every month, we advise our Clients of important accountancy deadline dates for the following three months. Here are the key dates for the rest of September, October, November and December
Nyman Linden is delighted to announce an Agreement with the Chartered Institute of Linguists appointing this firm as the preferred provider of accountancy services to the Institute's members.
At the start of every month, we advise our clients of important deadline dates for the following 3 months. Here are the deadlines for August, September and October
At the start of every month, we advise our clients of important deadline dates for the following 3 months. Here are the deadlines for July, August and September.
At the start of every month, we advise our clients of important deadline dates for the following 3 months. Here are the deadlines for June, July and August.
British companies migrating their call centre and back office functions to cheaper overseas destinations are putting their customers at greater risk from fraud, according to top accountancy research.
A spate of post-election IT projects in the public sector could lead to a repeat of the technology driven boom and bust seen in the late 1990s, according to the REC.
British business has warned the incoming government they will face “fierce” resistance to any attempt to raise corporate taxes, no matter which political party wins the General Election on May 5.
At the start of every month, we advise our clients of important deadline dates for the following 3 months. Here are the deadlines for May, June and July
The number of fake goods in the UK is soaring, according to statistics released by the European Commission (EC). According to an EC report, Customs & Excise seizures of counterfeits have risen by 147 per cent in the past year.
Threatening to terrorize the unions and legislators alike, a German website which lets job-seekers bid against each other by offering a minimum fee for their services, is due to launch in England in August.
Computer users are increasingly at risk from malicious cyber programmes because of a culture of ‘geek speak’ that leaves the majority confused and vulnerable about the most serious threats online.
Here is some news from one of Britain’s dwindling cohort of successful carmakers, Bentley (a company, which, unlike poor old Rover, has managed to hang onto its German owners).
Last week was a bad one for budget airline Ryanair and its long-suffering passengers. The flights may be cheap, but according to Which? (formerly the Consumers Association) the in-flight catering is anything but.
A few months ago, we told you that the Taxman has been investigating sellers on eBay and had suggested that transactions on auction sites are taxable. The Inland Revenue has now gone one step further and requested eBay to provide it with a list of all its users!
As well as promising regulatory reform for small businesses, in the small print of this year’s Budget is a new requirement that all employers send a ‘targeted letter’ to each employee, explaining the changes to the way that working tax credits are to be paid, i.e. the system whereby employers make the payments is to be phased out.
Evasive taxpayers in Southern India have fallen under the spotlight of local authorities for failing to settle their bills on time. Ten strong-teams of wedding drummers are regularly setting up camp outside the homes of late payers, with orders to play continuously until they settle their bill.
'IT Safe' Scheme Aims To Keep PC-Businesses Protected
The Government has launched a rapid response service alerting home users and small businesses to viruses and online threats. www.itsafe.gov.uk offers free advice as well as the facility to sign up to receive virus bulletins and security alerts.
The High Court hearing of the landmark S660 case began yesterday at 10.30 in Court 59 in front of Mr Justice Park. The hearing is expected to last three days.
As expected, there is to be no immediate change to the residence and domicile rules governing the taxation of individuals but the Government has invited further contributions to the long-running debate.
The Treasury has set a time limit for responses to the December 2004 discussion paper on taxation of small businesses, and signalled possible measures to clarify the distinction between employment and self-employment in the construction industry.
The Treasury has announced that it has set "stretching new targets" to reduce the administrative burden of the tax system for small businesses, including in the short term cutting the tax return for 500,000 of the smallest businesses and rolling out options for paying and managing VAT online.
Last year, we listened to our Clients using the NL AccountControl bookkeeping spreadsheet and took on board their redesign suggestions to make it easier to complete. So, welcome to NL AccountControl (Version 4.1).
We wish to remind every client that, as from 1 April 2004, if your company's annual profits made after that date were less than £50,000, the tax cost of taking all that money out as dividends rises.
All Nyman Linden, clients with annual sales of less than £150,000 should now be benefiting from the reduced Flat Rate Scheme (FRS) introduced by the government at the beginning of last year. This has been excellent news for our IT Consultant clients and Management Consultant clients.
The Chancellor is expected to turn a blind eye to storm clouds building on the Treasury’s horizon when he makes this week’s Budget statement, according to tax experts.
The National Audit Office has published an interesting report on government organisations’ complaint procedures. The conclusion does not come as a surprise: government systems for redress could be made a lot more accessible for the citizens who want to use them. And a more streamlined and systematic approach to complaints could bring significant savings.
Microsoft boss Bill Gates has slammed UK workers by saying most are liars because they tend to cover up shortcomings in their work by “blagging” to superiors.
Terrorists who planned to attack some of India’s largest IT companies have been shot, killed and imprisoned following a swoop by New Delhi authorities.
MPs are facing an election roasting from entrepreneurs because of the future publication of a report to determine how ministers have spent money helping the small business sector.
Internet entrepreneurs are falling victim to one of Britain's fastest growing crimes as cardholder-not-present fraud rockets to a record high of £150m.
Unsigned songwriters, bands and composers are being invited to generate from their work without signing away the rights to future earnings, thanks to a new website.
According to the Association of Technology Staffing Companies (ATSCo), contractors with web development skills now earn an average 30% higher wage than they did in 2004.
The UK has notified the European Commission that it has formally accepted the Commission’s recommendation of 19 January 2005 to abolish the exempt company tax régime in Gibraltar by the end of 2010.
Adults in the UK will "waste" almost £5.7bn this year in "unnecessary tax", according to IFA Promotion, an organisation representing around 10,000 firms of independent financial advisers.
The Small Business Research Trust (SBRT) today published its Quarterly Survey report, this year authored by the University of Liverpool Management School (ULMS in partnership with HSBC Bank and the Forum of Private Business). Among other findings, it showed that women business owners outperform their male counterparts and that Yorkshire's on the up.
An influential Lords Committee has urged caution over EU moves to give intelligence organisations greater powers to intervene in the operation of financial institutions in order to block terrorists' access to funds.
The dawn of 2005 saw International Financial Reporting Standards (IFRS) finally become a reality for fully-listed companies. For those quoted on the Alternative Investment Market (AIM), there has been a brief respite from full application until 2007. But AIM companies should not be complacent!
As members of the Institute of Chartered Accountants for England and Wales, the Partners at Nyman Linden fully endorse the ICAEW Tax Faculty's view that the strategy has much to commend it, aiming for every child to receive the best start in life. However, we also share the Faculty's concerns in relation to the interaction of this strategy with the tax system.
Support From Leading Lawyer In Section 660 Test Case
With just a week to go before the High Court appeal, a leading tax lawyer has explained his support for Geoff and Diana Jones, of Arctic Systems, who narrowly lost their Section 660 case at the Special Commissioners last year when the two Commissoners could not agree and a casting vote was given in favour of the Revenue.
A simplification of the benefits in kind rules on employee-provided computers and bicycles has been announced by the Inland Revenue. It clarifies the position when an employee buys a computer or bicycle that has previously been loaned to them by their employer.
Tax Inspectors could be set to strike for the first time in 20 years after the top civil servants' union said it was balloting its 10,000 members on whether to join a strike with other civil service unions.
Companies employing only their owner do not have to buy Employers' Liability Compulsory Insurance (ELCI). This new rule came into force on 28 February 2005.
The British film stars who missed out on coveted statues at Sunday's Oscar ceremony in Los Angeles may have to cope with a further setback when they return to the UK.
Profusion Of Penalties For Those Who Put Off Paying Their Taxes
Self-assessment taxpayers who failed to pay all the tax due for the 2003-2004 tax year by 31 January deadline, should be aware they will incur cumulative penalties the longer payment is delayed.
Brown To Unvail Pre-Election 'Tax Treats' For Professionals
According to one member of the Treasury Select Committee, Gordon Brown is to offer significant tax cuts to middle eaners and professionals when he delivers his budget on March 16.
A loophole in the system for registering details at Companies House has allowed fraudsters to hijack the identities of businesses and illegally obtain goods and services. Several companies have fallen victim to the '287 Scam' over the past few weeks, according to credit card fraud specialist Early Warning.
Companies House has stated that by 2007, 90% of documents filed with them should be done so electronically. We have clearly seen they are pushing the target early because the filing fee for a paper-filed Annual Return has now increased to £30 whilst a Return filed electronically remains at £15.
Revenue Investigating Composite and Managed Service Companies
The Inland Revenue has two dedicated teams targeting composite and managed service companies to establish, particularly since the advent of IR35, the extent of underpayment of National Insurance Contributions and the inappropriate use of the temporary workplace travel expenses rules.
The investigations are currently directed at the teaching profession. But what is educational today could be a real issue for IT tomorrow!
At the start of every month, we advise our clients of important deadline dates for the following three months. Here are the key deadlines for March, April and May
The Chancellor will make his Budget Report Speech to the House of Commons on Wednesday 16th of March. You can read our summary of the Chancellor's taxation provisions on this website within 24 hours of him finishing his speech.
The current initiatives and directives imposed by the OECD (the Organisation for Economic Co-operation and Development), the EU and other authorities mean there has never been a better reason for expatriate contractors to ensure their affairs are properly structured. This is where International Tax Solutions' (ITS) expertise becomes particularly invaluable.
International Tax Solutions (ITS), part of the Nyman Linden family of companies, successfully provides highly appealing, international intermediary services to expatriate consultants contracting their services overseas. ITS is pleased to announce the launch of some new solutions.
The High Court Appeal of the Arctic Systems case (for the so-called husband and wife tax, better known as Section S660A) will start on the 15, 16 or 17 March 2005 and last 3 days. The outcome could have massive implications for hundreds of thousands of husband and wife businesses.
Completing a VAT Return under the Flat Rate Scheme
HM Customs and Excise has no plans to issue revised VAT Returns to accommodate small businesses operating under the Flat Rate Scheme. Therefore, if your business is authorised to use the Flat Rate Scheme, you must enter your gross sales (sales including VAT) in Box 6.
