Contractor tax laws could hit employers - papers 31st Jan

The Recruitment and Employment Confederation has told Tresury officials employers using managed service companies and labour providers who are specifically established to reduce income tax and national insurance contributions, could be liable under the new legislation. From April 6, managed service companies will no longer be able to pay workers a mixture of dividends and salary in order to reduce income tax and NI. If it fails to pay the right amount of tax, the liability will fall on the scheme's specialist provider, many of which do not own any assets, says REC. But if they cannot pay,...