Tag Archives: HMRC

Accident or bad luck – not reasons to avoid paying the National Minimum Wage

As more employers are ‘named and shamed’ in the press for paying below the National Minimum Wage, the immediate question is “How can a large employer, with significant resources, be paying below the NMW by accident?” There are numerous areas where employers may find themselves unwittingly paying below the NMW and on the naughty step … 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

Practical tips for settling injury to feelings claims

Back in 2014 we posted a piece on Moorthy –v- HMRC http://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

Taxing times for UK discrimination claimant

The recent Tax tribunal case of Moorthy v HMRC considered the well-known Section 401 ITEPA 2003 which, together with Section 403, makes taxable payments over £30,000 which are directly or indirectly in consideration of the termination of employment.  It also looked at the rules allowing compensation for injury to feelings caused by unlawful discrimination to … Continue Reading
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