Contractor UK Limited’s Post

1099s are the biggest pain the butt. Everyone is caught by surprise that they've hired contractors without getting W-9s, and chasing them down once the check is cut is next to impossible. How to avoid the drama next year (it's easy): https://lnkd.in/d9FDF_y6 #taxes #smallbusiness #1099s #contractors

Does your business employ independent contractors? For some types of work being performed, the classification of independent contractors is easily determined. However there are some areas where an independent contractor may actually be considered an employee. Let our tax expert Kevin walk you through it. https://hubs.ly/Q02tFPQj0

Employees versus contractors: new rules Following two prominent High Court decisions which dealt with the distinction between employees and independent contractors, the ATO has provided guidance to businesses in the form of a new taxation ruling: https://lnkd.in/gAzfU5ir #taxation #taxes #businessguidance #contractors

One of the most significant issues I highlight to my clients these days is the risk companies that promote tax avoidance schemes pose to them. For me, tax avoidance schemes have been a thorn in the side of compliant umbrella companies like CHAMPION CONTRACTORS for far too long. Unfortunately, schemes persist, and HMRC regularly updates its report on tax avoidance schemes, promoters, enablers, and suppliers on the www.GOV.UK website. Agencies and engagers should always conduct due diligence on umbrella company suppliers, and HMRC’s report is a good starting point. For further information and guidance, contact the Champion team at 0161 703 2549 or email info@championcontractors.co.uk. Alternatively, visit our website or follow our LinkedIn company page. #Taxavoidance #Contractors #Umbrellacompanies #Contractorpayroll

Employees versus contractors: new rules Following two prominent High Court decisions which dealt with the distinction between employees and independent contractors, the ATO has provided guidance to businesses in the form of a new taxation ruling: https://lnkd.in/g-aet3Q8 #taxation #taxhelp #businessguidance

Hired a 1099 contractor? Here are a few key things to keep in mind 👇🏻 Bringing a 1099 contractor on board is a great way to add expertise and flexibility to your business without adding the extra employee related costs and complexities. But, it’s important to handle things the right way to stay compliant and avoid headaches down the road. 1. Unlike employees, contractors handle their own taxes. Ensure you’re not withholding taxes, but do stay on top of your own tax obligations related to hiring contractors. 2. Make sure you accurately track all payments to your contractor for tax reporting purposes. You’ll need to issue a Form 1099-NEC by January 31 next year. 3. Make sure your contractor is correctly classified as a contractor and not an employee. Misclassification can lead to serious legal and tax issues. Have questions? Drop them in the comments below – we’re here to help! Save this post for later.

Don’t let your contractors get caught out by non-compliant umbrella companies! Tax avoidance schemes posing as umbrella companies may promise your contractors higher take-home pay by breaking tax rules. However when caught by HMRC, they would be subject to heavy penalties, including extra tax, NIC and interest. It’s important to make sure your contractors aren’t falling foul to these non-compliant umbrella companies and that they’re getting paid the right amount. If you have any questions or want to make sure you’re being tax-compliant, get in touch with the Sapphire team today ➡️ https://lnkd.in/euGqn_sn #taxcompliance #recruiters

If you’re new to #contracting under an #umbrellacompany you’ll no doubt have questions regarding your tax code, and how it compares to permanent employment or when contracting through your #limitedcompany. Our blog explains all you need to know: https://lnkd.in/eww3j37N

In light of the Post Office Horizon Scandal where the Post Office both identified 'crime', and prosecuted it, and incentivising staff to secure convictions, is the HMRC and IR35 setting itself up for a forthcoming scandal where it is defining the rule, assessing the rules for itself, and then prosecuting people for failing to meet the rules? When the goal is to increase tax revenue, does this skew the way it interprets its own rules? IR35 has created a whole suit of knock effects that cost business and customers much more than any of the 'lost' tax the HMRC is after. I know of British people who have moved abroad and work remotely as contractors because they don't count as UK IR35 so HMRC has lost ALL their tax, and the tax on their spending so. We now have an industry of 'umbrella' companies, that now need to be investigated to see if they are scamming the system, and many employers find it easier to use off-shore staff than British based on contractors. When you can see the runes now ... will it take 10-20 years like the Horizon scandal before someone says that the whole IR35 industry that grew up cost the economy and employment much more than the tax the HMRC thought it was owed.

Before you make your next hire, ask yourself: Are they an employee or a contractor? The tax rules are different for each. Employees come with payroll taxes and legal responsibilities. For contractors, the IRS expects them to handle their own taxes, but misclassifying them could cost you big in fines and penalties. Are you confident in classifying your workforce? #TaxRules #PayrollTaxes #BusinessTaxStrategy #accountingservices #moneymanagement #financialliteracy