A client runs a consultancy business through a limited company. The PAYE scheme has been cancelled, so could his National Insurance contribution record be protected by the payment of class 2 rather than class 1 contributions?
The cases of Tower Radio and Aberdeen Asset Management are further evidence of a shift in the courts against avoidance
Employers are being given the chance to settle open enquiries into the use of employee-financed retirement benefit schemes (EFRBS) arrangements by agreement and without needing to take part in litigation.
Firms have until 31 December 2013 to consider the two options offered by HMRC:
K Okeke (TC2957)
HMRC have issued Revenue & Customs Brief 35/13 to set out the official position on the liability of entertainers to pay National Insurance (NI) contributions, subject to the proposed changes in the Social Security (Categorisation of Earners) Regulations being approved by parliament.
HMRC have published advice on the correct procedures to follow when a pensioner is moved from one PAYE scheme reference to another.
The first full payment submission (FPS) from the new reference must be submitted after the final FPS from the old reference has been sent.
Failure to follow the procedure may result in the Revenue setting up the new pension source as a secondary employment and issuing incorrect codes.
R Downward (TC2905)
A new service has been launched by HMRC to make matters easier for vulnerable individuals dealing with the tax department.
The deemed consent system for income tax enquiries aims to provide an informal channel for advisers to act on behalf of disable and disadvantaged clients in communications to the taxman
HMRC say they are aware of a tax error affecting recipients of disbursement from the Redundancy Payments Office (RPO) but will not make corrections unless asked to do so.
The RPO provides financial settlements to staff members of insolvent employers but does not operate a tax code on the payments, meaning only basic rate tax is deducted and workers often find they have paid tax excessively or erroneously.
HMRC might find Cotter is not the success they think it is
D Kishore (TC2855)
Trustees of PL Travers will trust (TC2830)
Download the exclusive Xero
free report here.
