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We stick our nose into UK tax

Thursday, March 12, 2020

Ah … we really can’t help ourselves. We’ve stuck our nose into the UK small business tax debate. We’ve made a submission to a House of Lords inquiry into what’s called ‘off payroll working rules’. Here’s a media commentary.

Our opening ‘shot’ in the submission states:
Since 2000, HMRC has tried to solve a perceived tax equity and revenue ‘problem’ through an incompetently conceived process (IR35) that has been incompetently administered. When IR35 failed, HMRC layered further incompetency upon incompetency resulting in the current ‘prescription’ of the off-payroll rules.
And that’s just the beginning of our criticism of the UK tax authority (HMRC) in its approach to the UK’s self-employed. The core issue is that HMRC has created a situation of double taxation of self-employed people.

We talked about this in August 2019 and SEA Executive Director, Ken Phillips, posted a YouTube explanation.

Our submission has created quite a little stir, it seems, on Linkedin at least, with one commentator saying ‘You’ve got to love the Australians, they don’t miss and hit the wall … they certainly put HMRC through the wringer there’.

But back to matters Australian.

There’s a big clampdown moving in on businesses that don’t make superannuation payments for employees on time. This includes massive fines followed by the disallowance of super payments as a tax deduction. This will mean certain business death for small business people who are in financial trouble.

But, if you’re behind in payments, you have until 7 September this year to catch up without penalties. Information here.

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