It has been the long held belief that vehicles described as dual or multi-purpose are company vans for benefit in kind purposes when completing forms P11D each year. The vehicles in question having a 2nd row of seats behind the driver with accompanying side windows.

This long held belief and interpretation is now under attack by HMRC’s Compliance Teams (under instruction from their Policy Unit). As part of the enquiry process these vehicles are considered by HMRC to be company cars for both Tax and Class 1A NIC purposes. The tax authorities reasoning is that they cannot be goods vehicles as “their construction is of a type which is not primarily suited for the conveyance of goods and burden”.

The resultant increased level of Tax and Class 1A NIC at risk if the tax authorities are successful is staggering. However, we are assisting a number of clients and their professional advisors defend the position having identified a number of technical arguments and are challenging HMRC’s position and basic interpretation of the tax legislation.

If you have concerns over your vehicle fleet or indeed are subject to a HMRC inspection and require expert professional advice, please contact us either by phone or email for a consultation.

Geoff Heron - 07709 428964
Or
Adrian Williams - 07709 441760

HMRC intend to proceed with the changes to IR35 and Off Payroll Working for large businesses with effect from 6 April 2021. The changes coming into effect require the end or “Top” Client in the supply chain to consider and make a decision on the employment status of a worker who supplies their services through a personal service company (PSC). That decision then needs to be conveyed to both the worker and the organisation who actually pay the PSC to ensure compliance.

The decision making process needs to be undertaken for each contracted piece of work regardless of the duration of that project or assignment. It is the responsibility of the “Top” Client to make these decisions and failure to correctly adhere and follow the new rules, is likely to render the end or “Top” Client liable for any resultant under deduction of PAYE and National Insurance Contributions where the workers deemed employment status is successfully challenged by the tax authorities.

The new IR35 arrangements cover all industry sectors and applies to the Construction Industry Scheme.

With our extensive experience and knowledge of employment status and IR35, we are able to put together bespoke training packages and the systems and procedures required to mitigate your business risk. We believe having a solid understanding of the issues and risks will ensure that the necessary foundations are in place to repel any challenge by HMRC and potential financial pitfalls that could easily materialise.

For expert professional advice to protect your business, please contact us either by phone or email for a consultation.

Geoff Heron - 07709 428964
Or
Adrian Williams - 07709 441760