Jenrick CPI has reason to believe that part of the government strategy to revive it’s coffers for 2010 will be to re-visit IR35. HMRC will be keen to find a route to maximise return to the Treasury in light of the announcement by the government of major cuts in public expenciture.

This was backed up by a recent interview with a tax inspector…….

IR35 is likely to be high on HMRC’s agenda this autumn as, following a lull of 18 months, limited company contractors will once more be in the firing line, warns former HMRC manager and IR35 expert Kate Cottrell of Bauer & Cottrell. (more…)

This article from Contractor Calculator is a must read for all IT Contractors.

Umbrella company contractors could be in line for further flak from the taxman if they find themselves in the ‘crossfire’ between their umbrellas and the taxman. Contractors are even being encouraged to ‘shop’ their umbrella companies over things like being too free and easy with their expenses dispensations.

HMRC has just released a briefing – Revenue & Customs Brief 50/09 – in which it unambiguously announces its intention to step up investigations of what it perceives as abuses of expenses and dispensation rules by umbrella companies. (more…)

For amounting to no more than a business discussion, a series of emails and phone calls between a provider of services and a repeat end-user fell short of establishing a contract.

Issuing the ruling, the Court of Appeal said the communications between the parties did not contain either enough details, such as fees, or the elements necessary to form a contract. (more…)

Britain’s leading technology companies have set aside their rivalries to form a coalition willing the creation of 250,000 IT jobs within the next decade.

They said the employment booster to the nation’s “IP-rich” IT sector was vital for the economy, given the decline of manufacturing and the “shock” to financial services. (more…)

Disputes between contractors, clients, agencies and umbrella companies are growing in number and becoming increasingly intense, as each player in the contract food-chain tries to hold on to cash as the recession bottoms out.

According to a report in Contracting Matters, disputes between umbrella-contractors and their clients and agencies have risen four-fold on last year’s figures. And Rob Crossland, Managing Director of professional business services provider Parasol, says the effects are wide ranging. (more…)

The subject of IR35 was raised again in the Commons last month, with a Government Minister refusing to reveal how many IR35 investigations were launched over the past five years. (more…)

Contractors supplying services to public authorities will not face requests under the Freedom of Information Act, in line with demands from the business community.

Heading off the prospect of extra costs for large and small government suppliers alike, policy makers said contractors would remain outside the scope of the 2005 legislation. (more…)

A landmark ruling in which a sub-contractor was deemed to be an employee could affect the employment status and legal rights of thousands of other so-called sub-contractors working in the UK.

The ruling has implications for hundreds of workers in the transport industry generally, as well as workers in a number of other sectors where contract labour is traditionally used such as large-scale construction projects like the Olympic site in east London, together with the NHS, education, IT and banking sectors. (more…)

The government’s decision to retrospectively close a loophole in the UK Isle of Man double taxation treaty is threatening the livelihoods of more than 2,000 freelancers.

The impact of backdated legislation in the Finance Bill 2008, to deal with affected schemes, has been so “severe” that all other retrospective provisions should be diverted. (more…)

A laid-off techie was right to say employment rights entitled him to claim unfair dismissal, despite being engaged as an independent contractor on a project with just a week’s notice.

The ruling, obtained by CUK from the case lawyers, is being seen as a landmark decision, for potentially allowing contractors inside IR35 to claim employment rights from their end- users. (more…)