Payquest News
Contractor tax to receive extra attention?
Contractor tax could be one area to receive extra attention from the government, as the authorities are stepping up their efforts to tackle tax issues.
According to the latest data from HM Revenue & Customs (HMRC), the gap between tax liabilities and actual receipts for the 2009-10 year was £35 billion. This is 7.9 per cent of total takings and a slight improvement on the 8.1 per cent missing from the previous year.
However, government officials are keen to crack down further on tax evasion, with around £917 million dedicated to HMRC in the 2010 Spending Review for the department to tackle uncollected taxes. The money came with the mandate to raise an additional £7 billion a year in taxes by 2014-15.
Dave Hartnett, HMRC permanent secretary for tax, explained: "The tax gap is the result of a wide range of behaviours and the challenges are constantly changing, but these figures show we are continuing to tackle non-compliance."
Contractors who are concerned about their taxes could look into using an umbrella company. This is likely to keep their taxes as low as possible, while ensuring that everything is strictly above board.
Posted on Friday 30th September 2011 - Contractor Job Market by Winchester Contracts