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The big picture - January 2016

Paystream News

Paul Malley

Friday 29th Jan, 2016

Our last newsletter discussed the growing focus within our industry of individuals using non-complaint schemes as a way to avoid paying the correct amount of tax and the new powers HMRC have been given in order to pursue tax avoidance. This month's newsletter provides more information on how HMRC have now started to enforce their new powers by sending out hundreds of letters to contractors warning that accelerated payment notices (APN) may follow for those that had used offshore schemes/EBTs in and around 2013/14.

The Government has also released the results from the travel and subsistence (T&S) consultation which confirms that "Individuals working through employment intermediaries will not be allowed to claim tax relief on their travel and subsistence (T&S) expenses, where the worker is under supervision, direction or control (SDC) in the manner in which they carry out the work". However there are still questions around the legislation and we are awaiting for further guidance and clarification so watch this space for more information as and when we receive it.

Also in this month's newsletter we explain HMRC's tax rate changes on dividends for limited company contractors and why it is important to be proactive with your tax planning.