blog header image

Posted : 11 Mar 2020 at 10:41:26
Category: Important Announcement

Share this article

A question was put to the Chancellor of the Exchequer on the 2nd March on self-employed, here is his response;

Self-employed: Tax Avoidance

QUESTION

To ask the Chancellor of the Exchequer, if he will establish a statutory definition of the self-employed to better support status determinations for tax purposes under IR35.

ANSWER

Employment status is straightforward for the vast majority of people. HM Revenue and Customs (HMRC) developed the Check Employment Status for Tax (CEST) tool in 2017 in conjunction with tax specialists, contractors, and other stakeholders, to support businesses in applying the off-payroll working rules correctly. CEST was further enhanced in November 2019.

In the vast majority of uses, CEST will determine whether the engagement is employed or self-employed for tax purposes. For those more complex or finely balanced cases where CEST produces an undetermined outcome, HMRC provide detailed guidance and dedicated support, including in the Employment Status Manual. HMRC will stand by CEST’s results provided accurate and correct information is used, in accordance with HMRC's guidance.

REALLY!

SIMILAR NEWS

blog header image
IMPORTANT ANNOUNCEMENT
HMRC ANNOUNCE THAT SELF ASSESSMENT CUSTOMERS WILL NOT BE CHARGED LATE PAYMENT PENALTIES

Today HMRC has announced that Self Assessment customers will not be charged the initial 5% late payment penalty if they pay their tax or make a Time to Pay arrangement by 1‌‌ April. The ...

blog header image
IMPORTANT ANNOUNCEMENT
UK GOVERNMENT ANNOUNCES PAY RISE FOR MILLIONS OF PEOPLE

Millions of UK workers to receive increase in pay from April 2021 following rise in the National Minimum Wage and National Living Wage. Published 26 November 2020 Around 2 millio ...

blog header image
IMPORTANT ANNOUNCEMENT
CHANCELLOR WARNED CONSTRUCTION VAT PLAN RISKS RECOVERY

Chancellor Rishi Sunak is being urged to abandon VAT changes which could cause a cash-flow crisis across construction. The Construction Leadership Council is hoping for a last-minute reprieve ahead of ...

blog header image
IMPORTANT ANNOUNCEMENT
GOVERNMENT SET TO WRITE OFF ESTIMATED £31BN OF PANDEMIC LOANS

An estimate of £31bn of government loans handed out during the pandemic will have to be written off, according to the UK’s spending watchdog. In its latest Covid-19 Cost Tracker, the Natio ...

blog header image
IMPORTANT ANNOUNCEMENT
SELF-EMPLOYED GIVEN EXTRA MONTH TO FILE TAX RETURN FINE-FREE

HMRC will not levy a late fine on those who file their tax return by 28 February 2021. The deadline to submit a self-assessment tax return is usually 31 January, and late penalties are usually applied ...

blog header image
IMPORTANT ANNOUNCEMENT
RISHI SUNAK SET TO EXTEND FURLOUGH SCHEME PAST APRIL

Rishi Sunak is reportedly set to extend the government’s furlough scheme beyond the end of April in his 3 March Budget. The chancellor is drawing up plans to extend the £82bn scheme into t ...

business-directory Business Directory
smartbusinessdirectory Payroll Services Business Directory
truebusinessdirectory payroll-services Directory
payroll-services Directory