No sooner has the furore surrounding Mr Lester died down, it now transpires that the Department of Health has been paying 25 senior members of staff through limited companies. In fact more than £4 million has been paid out in this way.
In case any umbrella company contractors have forgotten to file their income tax self-assessment form for the year ending April 2011, the deadline is tomorrow, January 31st!
A lot of contractors were probably waiting with bated breath to hear the latest news from the IR35 Forum. However, they were in for a disappointment when HMRC postponed the meeting scheduled for the 18th of January, saying there was more work to be done.
Under new proposals published last week, individuals, including umbrella contractors, who are suspected of committing a tax fraud will no longer be immune from prosecution.
Umbrella companies should start thinking about the changes they will need to make to their payroll software so that they can implement HMRC’s Real Time Information system.