Third of contractors 'outside IR35' under new off-payroll rules

The status of contractors under the new off-payroll rules is starting to settle, with two studies independent of each other both indicating about one-third to be working outside IR35.

The finding will reassure those who hoped that despite reactionary ‘inside’ decisions or PSC bans, the private sector will follow the public sector by eventually offering more ‘outside’ decisions than pre-reform.

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More than 63,500 customers filed their 2020 to 2021 tax return online on 6 April 2021 and HM Revenue and Customs is urging others to follow.

And with almost 950,000 online Self Assessment returns received so far this tax year, HMRC is urging others to do the same and file their tax returns early. Each year, thousands of people choose to file early, as soon as one tax year ends and the new one starts.

HMRC has seen a growing trend in early filers. In the last 5 tax years, the number of customers choosing to file on the first day of the new tax year has almost trebled from 22,885 in 2017 to 63,521 in 2021.

HMRC has today, published information to help customers file early – how to do it, what the benefits are, and what they need to get started.

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Covid: Can I go on furlough and when has it been extended to?

Employee's that were hired and paid between November 2020 - March 2021 had previously not been able to be furloughed.

The criteria has now changed based on the last extension of the furlough scheme and from May 2021 all employees who were processed on a payroll before 2 March 2021 can can be furloughed from 1st May onwards.

Currently the furlough scheme is due to end 30 September 2021.


HMRC is delaying the payment of self-assessment tax refunds

and threatening to remove individuals from the self-assessment regime if extensive and onerous information is not provided, says accountants Hillier Hopkins.

The accountants have seen a dramatic increase in letters from HMRC to clients demanding extensive documents and information that it calls ‘security procedures’ to make sure the ‘repayment amount claimed is correct’.

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IR35: Gary Lineker scores appeal over £4.9m tax bill.

In the most high profile case in the history of the IR35 legislation, former footballer and sports broadcaster Gary Lineker has been pursued by HMRC over £4.9m in unpaid income tax and NIC.

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The KickStart Scheme provides funding to create new jobs for 16 to 24 year olds on Universal Credit. Employers can apply for funding which covers 100% of the National Minimum Wage (or the National Living Wage) for 25 hours per week for a total of 6 months along with associated employer National Insurance & Pension contributions.
The deadline to apply for this scheme is 31 December 2021.

The online service to claim the fourth SEISS grant will go live on Monday 19th April.

If you’re eligible based on your tax returns HMRC will contact you in the coming days, to give you a date that you can make your claim from. It will be given to you either by email, letter or within the online service.

You’ll need to confirm you meet other eligibility criteria when you make your claim.

You must make your claim on or before 1 June 2021.

  Click here to learn more.

Another tick for Jack here in the office

Congratulations are due for passing his ICAEW Principles of Taxation Exam. Jack has now achieved his 'Certificate in Finance, Accounting & Business'
Keep up the hard work!!

Minimum/Living Wage Increase.

From 1st April 2021, The Minimum & National Living Wage rates increase and for the National Living Wage the age has also been reduced from 25 to 23 years old:

  • for 23+ to £8.91
  • for 21-22 yr olds to £8.36
  • for 18-20 yr olds to £6.56
  • for 16-17 yr olds to £4.62
  • Apprentices to £4.30


CBILS & BBLS Application Window Closing.

Time is running out to apply for a loan under the coronavirus business interruption loan scheme (CBILS) and bounce back loan scheme (BBLS).

The deadline for new applications is 31st March 2021. Businesses will be able to start an application for finance until the end of day on this date.

There is however a new 'Recovery Loan Scheme' launching on the 6th April but it will follow different lending criteria.

Budget 2021 - Restart Grants.

The Restart Grant scheme supports businesses in the non-essential retail, hospitality, leisure, personal care and accommodation sectors with a one-off grant.
Eligible businesses in the non-essential retail sector may be entitled to a one-off cash grant of up to £6,000 from their local council.
Eligible businesses in the hospitality, accommodation, leisure, personal care and gym sectors may be entitled to a one-off cash grant of up to £18,000 from their local council.