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The government’s rules for working off-payroll, known as IR35, apply when workers or contractors provide services through their own company or an intermediary, ensuring that workers pay the same Income Tax and National Insurance Contributions (NIC) as direct employees.

The IR35 reforms introduced in 2017 and 2021 were poorly received across the public and private sectors. So, when previous Chancellor Kwasi Kwarteng announced in September that these reforms would be rolled back in the next tax year as part of the Growth Plan 2022, many contractors and businesses welcomed this reversal.

However, new Chancellor Jeremy Hunt revealed in his first statement to the House of Commons in October that many of the measures proposed by Kwarteng would no longer be going ahead. This includes the repeal of the IR35 reforms, leaving the current implementation the same.

With so much confusion over the government’s tax plans, where does this leave IR35 – and what should contractors and businesses do now?

Though VAT-registered businesses should be submitting tax returns through Making Tax Digital already, some businesses have been able to continue using their VAT online account as well.

However, from Tuesday 1st November, this option will not be available for businesses filing monthly or quarterly VAT returns. The only option is to file through Making Tax Digital using compatible software – otherwise, your business could face a penalty from HMRC from 1st January 2023.

As difficult as adjusting to the new system might be, Making Tax Digital isn’t here to catch you out. It’s here to help reduce errors and make filing and paying VAT easier so businesses can get it right the first time. According to gov.uk, over 1.8 million businesses are benefitting from MTD, with more than 19 million tax returns filed through the service already.

If you’re concerned about Making Tax Digital penalties, here’s a quick guide to what could happen if you don’t file your VAT returns correctly, and what you can do to make sure your business complies with the new rules and doesn’t receive a financial penalty.

Every business using temporary labour should be aware of the potential for mini umbrella company fraud in their supply chain, which is why HMRC recently released updated guidance on this issue.
No matter which industry you work in, a fraudulent mini umbrella company (MUC) could pose serious risks to your business. Not only will you be participating in criminal activity if you get caught up in a tax fraud scheme, but the financial and reputational damage could destroy your business.
Not to mention that MUCs abusing the VAT Flat Rate Scheme and National Insurance contribution allowances will result in your workers not receiving the money and tax benefits they’re entitled to.
This blog explains everything you need to know about mini umbrella company fraud, including how to look out for it and what you should do if you need to report a mini umbrella company to HMRC.

For the sixth time this year, interest rates will be increasing next month from 11th October 2022.

Starting at 2.6% at the beginning of 2022, the most recent increase was 4.25% just last month, following the Bank of England’s decision to raise their base rate from 1.25% to 1.75% in August.

Now, in September, the Bank of England Monetary Policy Committee has voted to increase the base rate yet again to 2.25%. Since HMRC interest rates are linked to the Bank of England’s base rate, this means that HMRC interest payments – which went up last month – are also going up in October.

There is still no facility for contacting HMRC by email, but there is now the option of receiving a response by email when you contact HMRC.

As anyone who has dealt with HMRC by post will know, it can be a very slow process. With resources stretched further than ever by the combination of Brexit and COVID-19, it’s taking HMRC a long time to work through the ever-growing backlog of post.

This has prompted HMRC to slowly move into the twenty-first century by providing the option to receive responses by email, instead of waiting for a letter or phone call.

Of course, there are risks to all kinds of communication with HMRC – here’s what you need to be aware of, and what you need to do to opt in to receiving emails from HMRC.

Working through Inheritance Tax (IHT) is difficult after any death. The residence nil rate band (RNRB) provisions for spouses or civil partners can be especially confusing to navigate.

For example, when the second individual passes away, any unused RNRB left over from the first individual’s death can be relieved – but some executors are using the value at the first person’s date of death to claim this, when they should be using the second person’s date of death.

It doesn’t seem like HMRC has been picking up on this error, so if you think a mistake has been made in RNRB relief value in a case like this, then you’ll have to write to them yourself.

This blog explains the basics of residence nil rate band relief and what to do if you need help with claiming RNRB transfers.