Crystal Umbrella

Despite the absence of a formal announcement so far, accountants have been informed by government officials that all businesses will be required to file their VAT returns online as of 1st April 2012.

HMRC have publicised details of a telephone scam which could be targeted at contractors and small business owners. The fraudsters have been calling taxpayers posing as members of HMRC staff. HMRC have received several reports about this scam where taxpayers were asked to provide the caller with their bank account details in .order that a tax rebate could be paid in.

The conclusion of new research conducted by internet-based business marketplace PeoplePerHour.com has predicted that small businesses will be spending more on IT contractors. The research was conducted amongst small businesses in the UK with the aim of determining the habits of this community since 60% of employment and turnover in the country originates from this sector.

David Cameron has expressed his desire to review the effects of the impending Agency Workers Directive on employment opportunities. He is concerned that the extra rights and obligations will result in less contract opportunities.

New research has been conducted by business advisory group IMS Executive Ltd amongst 2,000 interim executives to determine the manner in which they, including many of those who work through umbrella companies, would cut their daily rates of pay.

Public sector IT management company Socitm has found that while managers of public sector IT departments have succeeded with smaller budgets, they will have to streamline, or possibly even decrease, their budgets in order to survive the fresh round of cuts.

The government is aiming to make the barring and vetting system more fit for purpose with increased transparency. The first step has been to release a new policy document which centres around contractors working in roles which require security clearance.

David Cameron’s coalition government is taking a hard line on those umbrella companies who flout the rules. Just like the previous administration, the current government are taking a zero tolerance stance with umbrella companies who operate schemes with the sole aim of minimising tax and NIC payments while topping up the take home pay of contractors with expenses.

Vince Cable has unveiled the measures which will be introduced by the government in their bid to tackle red tape faced by small business and third sector organisations. The government are aiming to change the interaction between themselves and these businesses. They are already encouraging people to become involved by nominating legislation which needs to be reviewed on the ‘Your Freedom’ site which was launched by Nick Clegg.

HMRC have confirmed that they will be employing the services of four debt collection agencies over the coming year as part of their programme to recover £140 million of debt from both companies and individuals.