England 12/08/2013 – This month the HMRC announced that self-employed contractors working as Ltd companies would be able to change their RTI status.
Leading to many contractors and their ir35 accountants breathing a sigh of relief. When the HMRC introduced RTI (Real-Time Information), many UK contractors went from paying PAYE at the end of the year to paying it every week or every month or intermittently. Now it is possible, for those who qualify, to register for annual PAYE, solving a huge accounting headache. Many contractors who work under an Ltd company only pay themselves once a year, so filing a monthly return was a pain and a waste or everyone’s time. The scheme will take time for HMRC to roll out and not all contractors and employees will qualify. As a result, contractors who want to change their status are being advised to consult a specialist accountant. Many contractors who are working under an Ltd company, but are only paid once a year, do not realise that they need to file a NIL EPS/period of inactivity form each month payments are not made.
Increasing demand for the services of specialist accountants
At the moment, it is very tricky for any UK based contractor to do take care of their own accounts and tax returns, so there has been an increase in demand for the services of firms like Nixon Williams. They have been offering accountancy services to UK contractors for nearly 20 years. Recently, they have seen demand for their services rise, but not just because of the new RTI regime. Much of the demand has come that more people in the UK have found themselves working on a freelance or contractor basis. More and more firms need their workers to be flexible, so are employing less and less people on permanent contracts. This has lead to the ranks of UK contractors, freelancers, sole traders and the self employed being swollen, and to an increase in demand for the services of accountants with experience of working in this area.