IR35: more government departments facing significant tax bills

It has recently been revealed that the Ministry of Justice and the Department for Environment, Food and Rural Affairs are facing combined tax bills of at least £121m. This is due to incorrectly determining the deemed employment status of workers who provide their services via an intermediary, typically a personal service company. Both government departments are likely to incur penalties, but the critical question is whether the engager has taken reasonable care?

This is a significant challenge which both private and public sector engagers must consider, especially as HM Revenue & Customs have stated the light-touch approach that is currently being applied will come to an end on 5 April 2022. Where any business engages contractors, they should review their current policies and procedures to ensure they will withstand any HMRC challenge.

For further information please speak with Nick Bustin, Employment Tax Director, or your usual haysmacintyre contact.

 

£1bn in support for businesses impacted by Omicron

The Chancellor of the Exchequer announced on 21 December 2021 a series of measures to help businesses most affected by the Omicron variant:

  • Businesses in the hospitality and leisure sectors in England will be eligible for one-off grants of up to £6,000 per premises, plus more than £100m discretionary funding will be made available for local authorities to support other businesses
  • The Government will also cover the cost of Statutory Sick Pay for COVID-19 related absences for small and medium-sized employers across the UK
  • A further £30m will be made available through the Culture Recovery Fund, enabling more cultural organisations in England to apply for support during the winter

These measures will come into effect immediately and we will closely monitor whether any further support packages will be provided by the Government.

For further guidance please speak with your normal haysmacintyre contact.

Business Tax Manager

The Role

Duties and responsibilities would include the following:

  • Managing the corporation tax compliance process for a portfolio of corporate clients including both standalone clients and groups;
  • Tax advisory to partners and clients including:
  • -Structures – company, LLP, etc.;
  • -Restructuring;
  • -Research and development tax relief;
  • -Group tax planning;
  • -International matters;
  • -Venture capital tax reliefs;
  • -Share schemes and valuations;
  • -Corporate and property acquisitions and disposals; and
  • -Tax sections due diligence reports.
  • Identifying tax efficient opportunities for clients and liaising with partners on implementing those opportunities;
  • Responsible for managing billing and work in progress;
  • Team responsibilities including line management for junior staff and assisting in development, training and the appraisal process for sub team staff; and
  • Involvement in business development of the firm including attending networking events and opportunity to join a sector group.

Person Specification

  • Deliver work to a high standard and willingness to provide an excellent client service;
  • Able to demonstrate good client focused skills, ability to work unsupervised, work within a team, influence and negotiate;
  • Excellent communication skills essential, being able to communicate with all levels externally and internally; and
  • Show creativity with desire to identify possible tax opportunities and potential pitfalls.

Work-Based Competencies

  • Has previously managed a client portfolio including groups;
  • Ideally be CTA qualified;
  • Good Microsoft skills, outlook, excel, word; and
  • Alpha tax knowledge preferred.

Schools Briefing – Autumn 2021

Various scams and fraud schemes have been put in place during the pandemic, so it’s important to stay vigilant. Vikram Sandhu outlines how schools can protect themselves from common frauds, who is then supported by Tony Gee, Pen Test Partners’ ethical hacker, explaining how schools could improve their cyber security.

Alex Gillespie and I outline why the management of reserves and financial monitoring is more important during turbulent times and, on the subject of cost control, Naseem Nabi summarises the options available to schools in connection with their membership of the Teachers’ Pensions Scheme (TPS).

As independent schools dust off their capital development plans, Lee Stokes draws attention to the current matters which will need consideration before embarking on a new project, and Nick Bustin advises on how schools need to address three current areas of employment tax.

As always, I hope you enjoy reading this publication and do let the articles’ authors, me, or your regular contact know if you have any questions concerning the matters discussed.

Trustee Training: What Every Trustee Should Know

This session will provide a comprehensive summary of trustees’ duties and responsibilities and will cover issues such as:

    • What information do you need as a trustee and what are your legal responsibilities?
    • The framework within which charities operate: the legal structures used by charities; the regulation of charities; the role of the Charity Commission; and the public benefit requirement
  • Trustees’ duties, responsibilities and potential liabilities, and the role of the chairperson
  • Responsibilities for identifying and managing risk
  • Charity accounting: the accounting and reporting framework, ‘unravelling the jargon’, preparation of accounts, ensuring you receive the right financial information, and the role of trustees and audit committee
  • Charity funds, investments, and banking
  • Fundraising: the ground rules; the role of professionals, and corporate support
  • Trading: the ground rules and the use of subsidiary companies
  • Recent regulatory developments
  • Governance best practice

Please note that as these events have limited capacity, they are intended only for charity trustees and relevant charity employees.

The full programme can be viewed here.

Trustee Training: Introduction to Charity Finance and Reporting

Please note that as these events have limited capacity, they are intended only for charity trustees and relevant charity employees.

During this session we will:

  • Examine the roles and responsibilities for finance teams
  • Examine what makes charity accounts so different to commercial accounts
  • Understand the terminology used and the different accounting treatments that apply
  • Explore what trustees should expect to receive in management information packs during the year to effectively monitor the financial operation of a charity
  • Review the regulation that charities need to comply with
  • Discuss the key reporting challenges
  • Discuss how to make best use of your annual report and accounts as a public facing document and fundraising tool
  • Look at the changes brought about by the new charity SORP
  • Cover managing risk within finance and consider the governance of financial risk

The full programme can be viewed here.