Sub banner


Tax Administration and Maintenance Day: Payme's Analysis of Recent Changes

Tax Administration and Maintenance Day: Payme's Analysis of Recent Changes

by on May 8, 2024

Yesterday was this year's Tax Administration and Maintenance Day, an important event for contractors and freelancers who need to stay updated on the latest tax regulations. With the changes announced, understanding the potential impact on your business is crucial. In this blog, we dive into Payme's perspective on the government's latest announcements and what these changes mean for you.


Four ways TAMD Day may affect you

  1. Tackling non-compliance in the umbrella companies market

A significant focus from yesterday’s announcements is the government’s ongoing concern with tax non-compliance within the umbrella company market. 

Non-compliance undermines the tax system and detrimentally affects workers, taxpayers, and the overall labour market. In response, the government plans to publish new guidelines and introduce an online pay-checking tool later this year to aid umbrella company workers in verifying correct pay deductions.

Moreover, the introduction of a due diligence requirement aims to eliminate bad actors from labour supply chains. This move, pending further engagement with the recruitment industry and other stakeholders, could significantly enhance compliance and protect workers engaged through umbrella companies.

  1. VAT treatment of charitable donations

The government is considering introducing targeted VAT relief for businesses donating low-value goods to charities. This initiative, intended to support those in need by facilitating more direct donations, will be open for consultation later this year. This could benefit companies looking to enhance their corporate social responsibility efforts.

  1. Enhancements in freeports and investment zones

The government intends to mandate employers in Freeports and Investment Zones to provide employee workplace postcodes when claiming secondary Class 1 National Insurance contributions reliefs. This legislative change aims to minimise employer errors and streamline the verification process by HMRC, thereby ensuring that the relief is appropriately applied and reducing the need for direct employer contact.

  1. Consultation on VAT treatment of private hire vehicles

Following the notable High Court judgments involving Uber, the government has launched a consultation on the VAT treatment of private hire vehicles (PHVs). This consultation is crucial as it seeks to address potential tax impacts on the PHV sector and its passengers, ensuring fair treatment and avoiding adverse effects from previous legal decisions.

Stay informed and prepared

The recent Tax Administration and Maintenance Day has brought several critical changes and proposals that could impact contractors, freelancers, and businesses extensively. 

As these developments unfold, staying informed and prepared is more crucial than ever. Payme is committed to providing ongoing support and updates to help you navigate these changes effectively.

To learn more about the changes and how they could affect you, contact Payme.