Archives: Tax

Subscribe to Tax RSS Feed

Extension of IR35 to the private sector, Part 12 – the benefits of not following your own procedures (UK)

We have cautioned earlier in this series about allowing your PSC contractors to become integrated into your business so far as their outward projection to clients is concerned – describing them as part of “our team”, giving them business cards, company phones or invitations to the client party, and so on. Integration is something you … Continue Reading

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
LexBlog