Budget 2014

Welcome… Welcome to The 19th March Budget edition of Tax Tips & News.

In this analysis we have mainly concentrated on the tax measures that will directly affect individuals, employers and small businesses.

We are committed to ensuring all our clients don’t pay a penny more in tax than is necessary.

Please contact us for advice in your own specific circumstances.

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This was a Budget for bingo-playing baby-boomers who have not started to draw their private pensions. George Osborne announced some sweeping reforms to the taxation of pensions and halved bingo duty. The traditional sin taxes on booze and fuel have largely been frozen or even reduced, although tobacco suffers a 2% above inflation tax rise. The new “sins” appear to be; owning a valuable home through a company and operating a high-stakes gaming machine.

Most individuals aged under 67 will feel the benefit of an increase in personal allowance from £10,000 to £10,500 in 2015. A transferable married couples’ allowance of £1,050 will also help basic rate taxpayers from April 2015. Savers will enjoy higher tax-free limits for ISAs and premium bonds later this year, plus a cut in tax on savings income from 2015.

Businesses are encouraged to invest in equipment by an increase in the annual investment allowance to £500,000 from April 2014, and reliefs for investing in small trading companies and social enterprises are enhanced. Small and medium sized companies who undertake R&D are also given additional tax relief.

The losers are those who use tax avoidance schemes, as those sinners will have to pay the tax avoided up front. Several other tax loopholes used by groups of companies are blocked, and the rules for VCT schemes are tightened-up to deter abuse.

This newsletter is a summary of some of the key points form the Budget, based on the documents released on 19 March 2014. It is possible that a different position will be shown by the draft legislation which will be published on 27 March 2014. We will keep you informed of any significant developments.


Business Taxes

Capital Allowances

The rates and thresholds of the main capital allowances will apply as follows:

From: 1 January 2013 to April 2014 1 or 6 April 2014 to 31 December 2015 From 1 January 2016
Main pool: writing down allowance 18% 18% 18%
Special rate pool: writing down allowance 8% 8% 8%
Annual Investment Allowance (AIA) cap: £250,000 £500,000 £25,000

Expenditure within the AIA qualifies for 100% allowance in the year of purchase. The AIA cap was increased to £250,000 on 1 January 2013, and is doubled to £500,000 on 1 April 2014 for companies (6 April 2014 for unincorporated businesses).

This increase in the AIA cap will help businesses invest in equipment and fixtures (cars and buildings don’t qualify), with 100% tax relief in the year of purchase. However, great care is needed to calculate the available AIA for accounting periods which straddle the various changes. The AIA cap is due to revert to £25,000 on 1 January 2016.

Corporation Tax


The corporation tax rates for small and large companies will be aligned at 20% from April 2015. This will remove the need for the associated companies rule and the marginal rate of corporation tax will disappear. The rates for the three financial to 31 March 2016 have been announced as:

Year beginning 1 April: 2013 2014 2015
Small profits rate (profits up to £300,000) 20% 20% 20%
Marginal rate (profits in band £300,000 to £1.5 million) 23.75% 21.25% N/A
Main rate for companies (profits above £1.5 million) 23% 21% 20%


Different rates apply to profits from North Sea oil and gas. Banks pay a special bank levy in addition to these rates of corporation tax.

Research and Development (R&D) Companies can claim enhanced deductions for expenditure on R&D projects at rates broadly dependent on the size of the company as follows: -Small and medium(SME): 225% of qualifying expenditure -Large: 130% of qualifying expenditure.

Where the SME deduction for R&D is claimed and the company makes a loss, it can claim a cash credit from HMRC of 11% of that loss. This rate is increased to 14.5% where the R&D expenditure is incurred from 1 April 2014.

Enterprise Zones Around 46 enterprise zones have been formed around the country to encourage investment and job formation. Businesses in some of those zones can claim 100% capital allowances on the equipment they use within the zone. The period for which those 100% allowance are available has been extended by three years to 31 March 2020.

National Insurance

Employees The rates and thresholds for National Insurance Contributions for 2014/15 are:

Class: Weekly earnings Rate
Employer’s class 1 above primary threshold Above £153 13.8%
Employee’s class 1 not contracted out From £153 to £805 12%
Employee’s additional class 1 Above £805 2%
Married woman’s rate* From £153 to £805 5.85%
Self-employed class 2(per week) - £2.75
Share fishermen class 2 (per week) - £3.40
Volunteer development workers class 2 - £5.55
Class 3 ( per week) - £13.90
Annual profit thresholds
Small earnings exemption class 2 £5,885 -
Self-employed class 4 From £7,956 to £41,865 9%
Self-employed class 4 additional rate Above £41,865 2%

*only available for women who made a valid married woman’s election before 11 May 1977.

Self-employed From April 2016 class 2 NICs will be collected through self-assessment, rather than been paid as a separate direct debit on a monthly or six-monthly basis.



Personal Allowances The standard personal allowance will rise to £10,500 from 6 April 2015. The age related allowances are gradually falling in line with age-related allowances given to taxpayers born since April 1948.

The transferrable allowance will apply from 6 April 2015 to couples (married or civil partners) where neither person pays tax at the 40% or 45% rates. The spouse who cannot use all their personal allowance against their own income will be able to opt to transfer 10% of their personal allowance to their spouse or civil partner.

The personal allowance is tapered away for individuals who have income over £100,000, at the rate of £1 for every £2 of income above that threshold.

2013/14 2014/15 2015/16
£ £
Born after 5 April 1948 9,440 10,000 10,500
born after 5 April 1938 before 4 April 1948 10,500 10,500 10,500
Born before 6 April 1938 10,660 10,660 10,660
Minimum married couples allowance* 3,040 3,140 TBA
Maximum married couples allowance* 7,915 8,165 TBA
Transferable portion of allowance N/A N/A 1,050
Blind person’s allowance 2,160 3,140 TBA
Income limit for allowances for age related allowances 26,100 27,000 TBA
Income limit for standard allowances 100,000 100,000 100,000
Personal allowance removed completely at: 118,880 120,000 121,000

* given as 10% reduction in tax liability, where one partner was born before 6 April 1935.

Income Tax Rates and Bands

Income tax rates are to remain the same to 5 April 2016, with the exception of the savings rate. This will be cut to 0% from 6 April 2015. However, the savings rate only applies if individual’s net non-savings taxable income does not exceed the savings rate limit.

The income tax rates and bands have been announced as:

2013/14 2014/15 2015/16
Savings rate: 10%, 0% from 2015/16 0 – £2,790 0 – £2,880 0 – £5,000
Basic rate: 20% 0 – £32,010 0 – £31,865 0 – £31,785
Higher rate: 40% £32,011 – £150,000 £31,886- £150,000 £31,785 – £150,000
Additional rate: 45% Over 150,000 Over 150,000 Over £150,000

When the personal allowance is taken into account an individual will start to pay tax at 40% when their total income exceeds £41,865 in 2014/15 and £42,285 in 2015/16. This is compared to a 40% threshold of £41,450 in 2013/14. This threshold (and the 45% threshold) can be increased if the taxpayer pays personal pension contributions or makes gift aid donations.



The following changes will be introduced from 27 March 2014: -A person who wishes to take their pension as “draw-down” instead of buying an annuity will have to prove they have £12,000 of other income in retirement, rather than £20,000. -The capped drawdown withdrawal limit will increase from 120% to 150% of an equivalent annuity. -The total pension savings which can be taken as a lump sum will increase from £18,000 to £30,000. -The maximum size of a small pension pot which can be taken as a lump sum (regardless of total pension wealth) will increase from £2,000 to £10,000; and -The number of personal pots that can be taken under these small pot rules will increase from two to three.

In addition the chancellor proposes to change the rules for defined contribution pension schemes from 2015 so that: -individuals will have complete freedom in how they access their pension savings; -buying an annuity will not be a requirement on retirement; -the 55% tax charge on withdrawing too much from a pension fund will be removed; and -everyone will be offered free and impartial advice on how to best use their pension savings.


Capital Taxes

Enveloped Dwellings

The annual tax on enveloped dwellings (ATED) applies where a residential property located in the UK is owned by a non-natural person such as; a company, partnership with a corporate member or a collective investment scheme. There are a large number of reliefs and exemptions from the charge, but where such a relief does not apply the ATED charge must be paid by 30 April within the year at the following rates:

Property value £ Annual charge 2013/14 £ Annual charge 2014/15 £
Up to 2,000,000 Nil Nil
2,000,001-5,000,000 15,000 15,400
5,000,001-10,000,000 35,000 35,900
10,000,001-20,000,000 70,000 71,850
Over £20,000,000 140,000 143,750

From 1 April 2015 the ATED charge is to be extended to properties with value of £1m to £2m. Then from 1 April 2016 the ATED charge will be extended to properties worth £500,001 to £1 million. The 15% rate of Stamp Duty Land Tax on such properties worth over £500,000 comes into effect from 20 March 2014 -; see below.

Capital Gains Tax

The rates and annual exemption for capital gains tax are as follows:

2013/14 2014/15
Annual exemption £10,900 £11,000
Annual exemption for most trustees and personal representatives £5,450 £5,500
Rate for gains within the basic rate band 18% 18%
Rate for gains above the basic rate band 28% 28%
Rate for gains subject to entrepreneurs relief 10% 10%
Lifetime limit for gains subject to entrepreneurs relief £10 million £10 million


Private Residences

As announced in December 2013 the 36 month tax free period when a person’s main home is sold, is reduced to 18 months for most disposals made after 5 April 2014. Where the home owner or their spouse is disabled or has moved into a residential care-home, the 36 month tax free period will still apply.

The Government will consult on how to charge capital gains tax on disposal of UK homes by individuals who are not tax resident in this country. Rollover Relief

Disposals of payment entitlements by farmers under the EU Basic Payment Scheme will qualify for business asset rollover relief with retrospective effect from 20 December 2013.


Inheritance Tax

The inheritance tax (IHT) nil rate band will remain frozen at £325,000 until 2017/18, and the rates of IHT payable on death remain unchanged at 40% or 36% where at least 10% of the net estate is left to charity.

The government will consult on extending the existing IHT exemption for the estates of members of the armed forces, whose death is caused or hastened by injury while on active service, to members of the emergency services.


Seed Enterprise Investment Scheme (SEIS)

The SEIS was introduced for a limited five year period from 1 April 2012. The SEIS has now been made permanent, with the income tax and capital gains tax reliefs applying as shown below for all future years.

SEIS 2013/14 2014/15
Rate of income tax relief 50% 50%
Maximum investment qualifying for income tax relief £100,000 £100,000
Gains exempt from CGT relief on investment in SEIS shares: 50% 50%

Venture Capital Trusts (VCTs)

Investing in VCT shares gives the taxpayer 30% income tax relief on up to £200,000 invested per tax year, and the shares are generally exempt from capital gains tax when sold. However, the Government thinks that VCTs have been abused, so the following changes will be made from 6 April 2014: -tax relief is withdrawn if the shares are disposed of within five years; -the VCT will not be permitted to return capital to its members within three years of the shares being subscribed for; and -VCT investments that are linked to share buy-backs will be denied tax relief.


The ISA investment limits for 2014/15 were announced in December 2013 as:

2013/14 2014/15
Shares and cash ISA £11,280 £11,880
Cash only ISA £5,760 £5,940
Junior ISA and Child Trust Fund £3,720 £3,840

However, this Budget includes the announcement that from 1 July 2014 the ISA rules will be reformed to extend the investment limits to:

From 1 July 2014
New ISA – for shares and/ or cash £15,000
Junior ISA and Child Trust Fund £4,000

ISAs will also be permitted to hold peer to peer loans as investments, and possibly other debt securities.

Premium Bonds

Individuals have been limited to the amount they hold in premium bonds to £30,000 per person since 2003. This cap will now be raised as follows: -From 1 June 2014 : £40,000 -From 2015/16: £50,000

There will also be two tax free prizes at the maximum level of £1 million awarded each month from August 2014.



VAT Rates

The VAT rates and thresholds are as follows:

-From: 1 April 2013 1 April 2014
  • Lower rate
0% 0%
Reduced rate 5% 5%
Standard rate 20% 20%
Registration turnover £79,000 £81,000
Deregistration turnover £77,000 £79,000
Acquisitions from EU member states, registration and   deregistration threshold £79,000 £81,000

Changes from 2014

  • VAT treatment of prompt payment discounts given by      suppliers

Changes from 2015

The Government will consult on changes to the VAT rules in the following areas:

  • Zero-rating of work to adapt cars for use by disabled      persons
  • VAT avoidance scheme disclosures
  • Reverse charge for buyers of gas and electricity – not      domestic customers

Duties Stamp Duty Land Tax (SDLT)

This duty applies to the sale of land or buildings in the UK as follows:

Effective Date Residential property Non-residential or mixed property Rate %
From 22 March 2012 Up to £125,000 Up to £150,000 0
£125,001 to £250,000 £150,001 to £250,000 1
£250,001to£500,000 £250,001 to £500,000 3
*£500,001 to £1m £500,001 and over 4
*over £1m to £2m N/A 5
* over £2m N/A 7

From 20 March 2014 the residential properties in bands marked * are subject to SDLT at the rate of 15% where the property is acquired by a non-natural person such as a company, partnership or collective investment scheme. For sales in the period: 22 March 2012 to 19 March 2014 the 15% rate of SDLT only applied to properties sold for £2 million or more where the buyer was a non-natural person.

Bingo Duty

The percentage of bingo promotion profits paid in duty is cut from 20% to 10% with effect from 30 June 2014.

Machine Games Duty (MGD)

This duty was introduced from 1 February 2013, and must be collected by the owner of the premises where the game machine is provided for play. MGD applies at two rates: -5% when the fee for playing a game is not more than 20p, and -20% for other machines.

From 1 March 2015 MGD will apply at 25% for games which may cost £5 or more to play.

Air Passenger Duty (APD)

This duty currently applies at three rates (reduced, standard and higher) over four bands (A, B, C & D), according to the distance travelled.

From 1 April 2015 the bands will be reduced to two: -journeys up to 2000 miles -journey over 2000 miles

The rates will also be reduced except for the higher rate which applies to aircraft with fewer than 19 seats – generally luxury jets.

Please contact us if we can help you with these or any other tax or accounts matters.

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Bid to recoup £9bn in unpaid tax

In the Autumn Statement, Chancellor George Osborne announced a major  package of measures to cut tax avoidance, evasion and tax planning and together, these changes are expected to increase government receipts of £9bn over the next five years.

These new measures will focus on working via an agency, avoidance schemes, charity schemes and partnerships.

The chancellor has announced changes to prevent “employment intermediaries being used to avoid employment taxes and obligations by disguising employment as self employment”.  These changes are focused on agencies.  If you work through an agency you are treated as self-employed if you meet certain tests.  One of these specific tests is the right to send someone else to do the job instead of you, which is known as the right of substitution.

If there is a right of substitution, the company you work for does not have to pay employer NI, saving 13.8% on all wages over a low threshold.  Some agencies have been using contracts which include a clause giving the individual a rights of substitution, even when there is, in reality, no such right.

These new rules and changes which target the use of such contrived contracts are expected to net around £500m a year.

HMRC will challenge any marketed avoidance scheme which it believes to be ineffective, through the courts.  Usually one or two cases are selected as test cases and take several years to go through the courts.  The rest, which are called “followers” by HMRC, sit and wait to see what happens.  During this time, followers normally retain the benefit of the tax saving and HMRC have to recover the money later if they win in the courts.

Two changes are expected with the new rules.  First of all, if the scheme is defeated in the courts, at any stage, followers will be asked to concede their case.  If they do not, because they hope the test case will succeed on appeal, they will be charged a penalty if the test case is eventually lost on the same point of law.

The second, once HMRC have won in court, the followers who do not concede will have to pay over the tax which has been avoided, even though the test case itself appeals to a higher court.

The government are also looking at tightening these rules further so that to prevent those using tax avoidance arrangements gaining a cash flow advantage while it is under challenge.

New rules will also apply to charities which will prevent a charity from being entitled to claim charity tax reliefs, such as Gift Aid, if tax avoidance is one of the main purposes of establishing the charity.

The definition of a charity for tax purposes will also be amended to exclude such charities.  These changes are likely to be a response to arrangements such as those set up by the “Cup Trust” in which £46m of Gift Aid was claimed by the trust, but the charity only received benefits of £155,000.

New legislation is expected to clamp down on schemes that, in recent years have seen a number of planning arrangements under which a company becomes a member of a partnership.

Where the arrangements reduce tax rates for the other partners, the rules take effect from 5 December 2013 and in other cases they will take effect from 6 April 2014.

This Autumn Statement underlines the overall message from previous Budgets, that the government wants to narrow the loopholes and tighten the net on tax avoidance.

Overseas home owners to pay tax on UK property sales

Under new changes to capital gains tax announced by the Chancellor, foreign property owners will now pay tax on any gains in value on UK properties they own.  Under the current system, only second home owners who are UK residents pay the tax, which is typically levied at 28% on any rise in vale when they sell a property.

George Osborne said that the current system was “not right”.

The move had been expected when Deputy Prime Minister, Nick Clegg said last month, that the government was considering the change.  This new tax change will come into effect from April 2015.

Wealthy property buyers from countries like China and Russia have been buying properties in London as a base for their visits to the UK and others from the Euro Zone have bought as a hedge against any break up of the single currency area.  It is feared that foreign buyers of second homes are contributing to a housing bubble in London, where property prices are rising far faster that the other areas in the country with values rising by more that 10% in a year.

Mr Osborne said ” Britain is an open country that welcomes investment from all over the world, including investment in our residential property.  But it is not right that those who live in this country pay capital gains tax when they sell a home that is not their primary residence, while those who don’t live here do not.”

It has been estimated that as much as 70% of newly built properties in central London are bought by foreign investors.

PAYE in Real Time – Help for Micro Employers

The vast majority of employers are finding reporting in real time straight forward, but HMRC do recognise that a small proportion of micro employers (nine or fewer employees) and their agents still require more time to adapt.

Therefore, HMRC has agreed that existing micro employers (or their agent) who require more time will now have up to two years to adapt their processes to ensure they are ready to report all payments in real time before April 2016.

All employers will be required to report their PAYE each time they pay their employees by April 2016 (exemption rules may apply for example, in some limited circumstances employers have a week to report payments to casual workers).  Micro businesses will be encouraged by HMRC to adapt their processes sooner to ensure they are ready to report all their employees payments, in reaql time by April 2016.

This new relaxation is only applicable to existing employers of nine or fewer employees.  All employers starting to operate PAYE after 4 April 2014, as well as existing employers with 10 or more employees, will need to report ech time they pay therir employees from April 2014.

New employers are being encouraged by HMRC to start off on the right foot and are helping them to avoid the need to change their reporting process at a later date.

This package was developed with employers, agents, payroll software providers, representative bodies and the Department of Work and Pension, to help micro employers as the move towards full reporting of PAYE in real time,

The package also includes:-

  • Improved guidance, including best practise scenarios
  • Ongoing work with the software industry to harness technology to develop new ways to report PAYE information on or before the date they pay their employees

HMRC has been working closely with the Department of Work and Pensions in developing this package to ensure that it balances teh needs of Universal Credit claimants and micro employers.  Real time PAYE information is vital to ensure that all employees claiming Universal Credit receive what they are entitled to.  Therefore, it is important that micro employers make best use of this time given, so that they are reporting on or before they pay their employees by April 2016 or before Universal Credit is fully rolled out.

BBC staff in revolt as freelance deals are axed!

The BBC are reported to be in a tax row with some highly paid presenters over the freelance contracts which enable their tax bills to be reduced.

The BBC have pledge to end paying stars through “personal service companies” and has told the Government that it would move within the next few weeks to phase out these contracts.

However, there are 6,000 freelancers involved in the corporation and the BBC have said they are struggling to unravel the complex ways in which stars are paid.

Pension Scheme for the Self Employed

A pension scheme known as NEST (National Employment Savings Trust) has opened it’s doors to everyone wishing to build for retirement.

The pension was originally built as a simple and cheap fix for companies without a scheme for their staff, but excluded the self employed, however now it has opened it’s doors to everyone, it will allow those who are self employed to shave thousands off personal pension schemes.

Millions of self-employed workers can save £30,000 in pension costs by using this ultra-cheap plan.

For many self employed, they would look at selling up later in life and paying their windfall into a penison ready for retirement, but often a pension pot of £100,000 would only give £5,000 a year income. Another alternative was to put aside a small pot of money every month.

A major advantage to this scheme is that paying into a pension attracts tax relief and the Government will refund the income tax paid on contributions up to £50,000 (£40,000 from June 2013). NEST works out as one of the cheapest pension options for those who require a no frills plan.

The main fee on the NEST savings is 0.3 per cent fund management charge (0.30pence per year per £100 in the pot). However, there is a temporary charge of 1.8 per cent on contributions which works on £98.20 of every £100 being saved. This temporary charge is siphonned off to repay the Government loan which was used to launch the scheme and this fee will be scrapped once the debt is repaid.

A typical pension charge is 1 per cent but these can often be higher and in some cases can take up to a quarter of your final pot.

HMRC – Warning to Tax Avoiders

HM Revenue and Customs (HMRC) have announced that they are sending letters directly to 1,500 people who it suspects are avoiding tax by signing up to one particular avoidance scheme. warning them that their financial affairs are facing scrutiny.

The correspondence is a pre-emptive strike before the scheme’s legality is challenged.

The National Audit Office said such schemes cost the UK more than £10bn

HMRC have been dealing with a backlog of 41,000 cases of aggressive tax avoidance involving individuals and small companies and in an attempt to tackle the backlog, HMRC is sending out four versions of the same letter in a pilot scheme. The first wave of about 700 will start landing on doormats on Saturday.

One version of these letters say: “You are in the small minority of people who have made the deliberate choice to avoid tax. We focus our resources on this small minority. The choice that you have made changes the way we view your tax affairs.

“Our Specialist Investigations Unit will be carrying out a full investigation into this scheme and they will open an enquiry into your tax affairs.”

It goes on to suggest that people who use the scheme could find that they have to pay the outstanding tax, plus interest, and – in certain circumstances – could face a financial penalty.

It provides contact and payment details for people if they wish to pull out of the scheme immediately and pay up.

No details have been submitted regarding the recipients.

Tax avoidance schemes are legal but, in this case, HMRC is saying that it has good reasons to put it under the microscope and are applying a new tactic. HMRC is writing to people directly to give them the opportunity to get out of the scheme, which has not been named publicly.

An HMRC spokesman admitted that these people were free to argue because no ruling had yet been made about the legality of this scheme.

Normally, HMRC would contact the promoters of these schemes, rather than the individual investors themselves, to tell them that they will be challenging the scheme at a tax tribunal.

More than 1,000 people were thought to be using the scheme which was said to be sheltering £168m a year from the Treasury.

The National Audit Office’s report said that between 2004 and 2011, about 2,300 avoidance schemes were disclosed to the tax authorities, with more than 100 new schemes emerging in each of the past four years.

HMRC said it had successfully challenged 40 schemes in two years, but MPs said that the UK tax authority must do better in tackling “mass-marketed” schemes.

A rise in businesses turning to contractors

Professional businesses have started to increase relying on contractors rather than permanent staff to meet their staffing needs according to recent figures.

Agency body, APSCo, reported that temporary placements are up by four per cent in the last year, while the number of new permanent jobs in the professional recruitment market has continued to fall, with a two per cent drop in the number of available jobs in the same period.

Ann Swain, Chief Executive for APSCo, said: “We’re seeing a very continuous trend in the professional recruitment market towards the hiring of temporary staff in preference to permanent staff. Businesses still don’t have the confidence to make permanent hires when they can use temporary staff instead.

Hopefully the UK’s recent positive GDP figures will prove to be a shot in the arm for UK professional service firms, and lead to more confident permanent hiring of staff.

“Whilst an increase in temporary placements may not appear good news as permanent hires fall, the use of contract workers is offering a great deal of flexibility to both employers and employees.”

APSCo’s monthly jobs data report provides a snapshot of the UK’s professional recruitment market across all professional-level sectors including financial services, marketing, engineering and legal services.

APSCo says that the sector to have seen the strongest growth in temporary placements is the marketing and media sector, which saw a seven per cent rise in placements in the last year.

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HMRC – pledge to increase IR35 investigations

HMRC promised to increase their enforcement activities following a damning Parliamentary report, 10 years after its introduction.

The influential Public Accounts Committee (PAC) took a swipe at freelancers as it examined the recent much-condemned practice within the public sector, particularly some Government Departments and the BBC, of paying some of their senior workers via their own companies to reduce tax and NI bills.

The Government is now to put its house in order concerning the so-called ‘off-payroll’ conditions. Firstly, it tightened up the way it contracts with freelancers; then private companies were told to do the same if they wished to contract with Government; and now the PAC has lambasted Government and the BBC for its reliance on freelance and interim worker who ‘presents a risk to value for money’; and condemned HMRC for its lack of IR35 investigations. As a result, HMRC is to increase the number of IR35 investigations ten fold next year.

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