Freelancers advised to keep detailed tax records

IR35 investigations can be carried out at any time to ensure that contractors are complying with IR35 regulations. This ruling has been in force since 2000 to make sure contractors, working as employees, pay tax and NI contributions.

They also warn that if contractors fail to keep adequate records they may be subject to a fine.

However, contractors working through an umbrella company already have tax and NI deducted from their pay and therefore are compliant with HMRC's regulations.

HMRC has also launched a new tax podcast which will provide up-to-date information on any changes in VAT, PAYE and corporation tax. This should prove an extremely useful method of obtaining accurate and timely reminders about major changes. It only takes 15 minutes to download and listen and features guidance from 2 experts on the new regulations relating to filing the new online Employer Annual Returns.

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