Do keep up at the back.
Your contractor link (which I read yesterday) refers mainly to IR35 contractors working on public sector contracts (PSC). The point this particular article makes is that like CHAS registered contractors, they must deduct a percentage from the remuneration paid to the sub contractor prior to paying them.
peirre:
Do keep up at the back.
Your contractor link (which I read yesterday) refers mainly to IR35 contractors working on public sector contracts (PSC). The point this particular article makes is that like CHAS registered contractors, they must deduct a percentage from the remuneration paid to the sub contractor prior to paying them.
Do keep up at the back old chap, the PSC in the article refers to Personal Service Companies.
peirre:
Do keep up at the back.
Your contractor link (which I read yesterday) refers mainly to IR35 contractors working on public sector contracts (PSC). The point this particular article makes is that like CHAS registered contractors, they must deduct a percentage from the remuneration paid to the sub contractor prior to paying them.
Thanks, I’ll try harder to stay awake. 
He also made some remark about incorporation, has anyone got a view on that?
Making Tax Digital
On 15 August 2016 HMRC published six consultation documents on Making Tax Digital. The six consultations set out detailed plans on how HMRC propose to fundamentally change the method by which taxpayers, particularly the self-employed and landlords, send information to HMRC. Two key changes proposed are:
From April 2018, self-employed taxpayers and landlords will be required to keep their business records digitally and submit information to HMRC on a quarterly basis and submit an End of Year declaration within nine months of the end of an accounting period (accounting periods are typically 12 months long).
HMRC will make better use of the information which they currently receive from third parties and will also require more up to date information from some third parties, such as details of bank interest. Employees and employers will see the updating of PAYE codes more regularly as HMRC use the data received from the third parties.
The government has announced it will publish its response to the consultations in January 2017 together with provisions to implement the changes.
VAT Flat Rate Scheme
An anti-avoidance measure will be included within the Flat Rate Scheme. A new 16.5% rate will apply from 1 April 2017 for businesses with limited costs, such as many labour-only businesses, using the Flat Rate Scheme. Businesses using the scheme, or considering joining the scheme, will need to decide if they are a ‘limited cost trader’.
A limited cost trader will be defined as one whose VAT inclusive expenditure on goods is either:
less than 2% of their VAT inclusive turnover in a prescribed accounting period
greater than 2% of their VAT inclusive turnover but less than £1,000 per annum if the prescribed accounting period is one year (if it is not one year, the figure is the relevant proportion of £1,000).
There will be exclusions from the calculation to prevent attempts to inflate costs above 2%.
Comment
The Flat Rate Scheme is only available to smaller businesses. The flat rate depends on the trade sector and the rates range from 4% to 14.5%. Some businesses will need to perform further calculations to determine whether the trade sector rate or the 16.5% rate applies.
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And the gravy train arrives at the station…