Directors: A Company Director is not classed as a worker unless
a) the individual works for the company under a contract of employment, and
b) there is at least one other person working for the company under a contract of employment.
This exemption can apply to more than one director working for the same company.
Client Workers: Are individuals aged 16-74 (inclusive) and work or ordinarily work in the UK and either work under a contract of employment or are not an employee but meet the following 3 conditions.
i) they are contracted to carry out the work themselves and cannot freely sub-contract the work or send a substitute,
ii) they are not a director of the company they are working for,
iii) they are not undertaking the work as part of their own business.
If the Client Company is paying another company for the work being carried out by a worker, and not the worker themselves, then the other company would be considered the worker’s employer for auto-enrolment purposes.
New Rules for Reclaiming VAT.
Micro-entities that are below the current UK VAT threshold (£82,000/annum) and are registered with the VAT Mini One Stop Shop (VAT MOSS) can continue to use their payment service provider to establish a consumer’s location.
Those that supply digital services to EU consumers can register with VAT MOSS therefore removing the need to register in every EU member state they supply to. Those below the VAT threshold can use VAT MOSS to account for VAT due in other EU states but do not need to account for or pay VAT on sales to UK consumers. These firms have to provide between one and three pieces of evidence to prove they have established the consumer’s location. The deadline for this has recently been extended to indefinitely.
Personal Savings Allowance
On 6th April the Government introduced a Personal Savings Allowance. This means that a basic rate taxpayer can earn £1000 of interest on their savings and not pay tax. A higher rate taxpayer has an Allowance of £500. An additional rate taxpayer is not entitled to a Personal Savings Allowance.
Tax and On-line Selling
HMRC are pushing Ebay and other similar on-line sites for details of people selling items through them. They want to crack down on people trading through these sites for profit. HMRC want to give everyone their own on-line tax account. So far Ebay and others like them are resisting but for how long.