Within the always exciting topic of tax, we have lots to share at the moment. UK tax is a constantly shifting landscape, often due in no small part to confusingly grey legislation, so we’ve caught up with Jovan Pavlicevic – commercial director at forest accountants, to understand what April 6 has in store for recruiters. You can catch number five: LLP Salaried Partner Rules here and this week we’ll continue the countdown:
#4: Onshore intermediaries
The close cousin of the offshore intermediaries legislation (see next instalment). This is all about targeting false self employment – with a focus on certain sectors like construction, and an aim to address mass-marketed schemes. HMRC have cleverly deployed the phrase ‘a large minority’ of workers they’re aiming to capture.
So what does it all mean?
The UK is in for a price shock. Put simply, the Government is going broke, so a number of tax advantages that were previously available are being shut down. The cost of employing is going up substantially – compulsory auto enrolment pensions being a further driver. With the way the new legislation is structured, HMRC are stating clearly that avoidance would be foolish, so the market, and we as consumers, will have to cope with that increased pressure on employers in the form of higher costs.
There are other changes being introduced, and we’ll keep you informed. Forest is an ICAEW member firm, and FCA regulated firm of financial advisers. They can be contacted on: 0845 459 4099.
Stay tuned for number 3 on the countdown – The Offshore Intermediaries Legislation
