Archives: Tax

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Extension of IR35 to private sector, Part 8 – the difference between ham and eggs

When considering whether an individual would be an end-user’s employee for IR35 purposes if you took away his personal services company, HMRC will pay particular attention to how far his role can be said to be integrated into the business of that end-user. Some peripheral involvement is absolutely fine, but the greater the degree of … Continue Reading

Extension of IR35 to private sector, Part 6 – getting too personal (UK)

From April 2020, IR35 will make end-user businesses liable to deduct income tax and National Insurance on payments to personal service contractor companies where, if you took away the company, the individual whose services are supplied would be their employee. A key factor in that question is the obligation of personal service on the individual … Continue Reading

NLRB Clarifies How Employers May Respond When Unions Request Information About Tax Cut Savings and Other Matters (US)

Earlier this week, the National Labor Relations Board’s top prosecutor clarified how he views several key issues that arise when unions request information from employers. Board General Counsel Peter Robb confirmed that his office will not require employers to automatically inform unions about the amounts the employers have saved due to the recent federal tax … Continue Reading

Tax treatment of termination payments: changes from April 2018 hit employers again

The UK Government is altering the tax treatment of some termination payments for exits taking effect on or after 6 April.  These changes are the product of the HMRC’s grotesquely misnamed Simplification of the Tax and NI Treatment of Termination Payments consultation paper in August 2015.  The worst excesses of this have come off in the … Continue Reading

Unclear and present danger – incorrect use of “Independent Contractor” arrangements may have expensive consequences

The ever-vexed question of whether a worker is an employee or independent contractor has once again come before the Australian courts. The recent decision of Balemian v Mobilia Manufacturing Pty Ltd & Anor provides a reminder to employers of the potential financial ramifications of getting this wrong.… Continue Reading

New HMRC IR35 status tool reviewed

Last week HMRC launched an online tool to help decide whether an individual is employed or self-employed for tax purposes (not whether he is a “worker” for employment status purposes, which is a separate question which HMRC isn’t bothered about). The tool is here online tool. You answer some questions, turn a metaphorical handle and … Continue Reading

Breaking the “million yen barrier” in Japan

For some time, the majority of married women working part-time in Japan have brought home annual pay of less than 1 million yen (around USD 9,150 at today’s exchange rates). This is largely the result of tax and compensation policies: At an annual income of 1.03 million yen, a part-time employee becomes subject to income tax, … Continue Reading

UK Budget changes to severance payment tax treatment

We don’t yet know what lessons, if any, the Government took from the serial savaging by all sides of its disastrous consultation document on reforming the tax treatment of severance payments https://www.employmentlawworldview.com/uk-government-consults-on-tax-treatment-of-severance-payments-do-you-want-the-bad-news-or-the-bad-news/. It has not published any response to that feedback, but we can probably take some short-term clarity in this area from yesterday’s Budget. … Continue Reading

Practical tips for settling injury to feelings claims

Back in 2014 we posted a piece on Moorthy –v- HMRC https://www.employmentlawworldview.com/taxing-times-for-uk-discrimination-claimant/, a case looking at the taxable status of payments to employees for injury to feelings caused by unlawful discrimination. Historically there had been an unspoken understanding that such compensation could be paid tax free, on top of the usual £30,000 allowance for termination … Continue Reading

UK Government consults on tax treatment of severance payments. Do you want the bad news or the bad news?

I know that over the years we have said some pretty harsh things in this blog about assorted government proposals and consultation exercises, but I take it all back.   There is a new kid in town, the HM Treasury/HMRC consultation document on Simplification of the Tax and National Insurance Treatment of Termination Payments https://www.gov.uk/government/consultations/simplification-of-the-tax-and-national-insurance-treatment-of-termination-payments and … Continue Reading

The beginning of the end for personal service companies in the UK?

HMRC issued a consultation document on 17 July 2015 to explore options for tightening up IR35, the intermediaries legislation that aims to tackle tax avoidance through disguised employment. IR35 requires individuals working through an intermediary (e.g. a personal service company (PSC)) to pay broadly the same tax and NICs as any other employee, where they … Continue Reading

Fifty Shades of Grey area – it’s prostitution for tax reasons, virtually

In Poland the Tax Office operates a system whereby you can seek prior confirmation of the tax treatment which would be applied to any proposed business activity.  One such application has recently hit the press, partly because of its subject matter and partly because of the sheer degree of prior consideration which had clearly gone into … Continue Reading
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