At least one North Sea operator is going ahead with a “death knell” tax change affecting self-employed contractors in the oil and gas industry, despite the UK Government postponing its introduction.
As one of the most controversial pieces of legislation affecting the flexible workforce, IR35 is never far from the headlines and there have been campaigns and protests to try and halt the reforms. That has now been successful as Contractors celebrated their success last night.
The UK Government has postponed the introduction of a much criticised tax reform that would have had major implications for North Sea contractors.
Any lingering hopes of a reprieve for North Sea oil workers from an unpopular tax reform were dashed by the Chancellor today.
A House of Lords investigation into upcoming IR35 reforms has been told that additional guidance is needed on employment definitions in the UK.
Oil and gas contractors are set to shun the North Sea sector rather than join supermajors after the introduction off-payroll working (IR35) tax changes next month.
Jake Molloy, RMT Union regional organiser for the north-east of Scotland, last night said he was “not surprised” by the news that contractors are rejecting the PAYE offers by oil firms.
A UK Government review of new tax rules expected to affect thousands of oil and gas workers has been slammed as “recklessly inadequate”.
Energy Voice has been running regular articles about the pending HMRC changes that will see the current IR35 arrangement altered to prevent, we are told, tax avoidance.
Tighter tax rules after the introduction of IR35 could see North Sea contractors face “random audits”, according to a north-east accountant.
An Aberdeen MP has called for a u-turn on national tax plans- saying oil workers will be hit hard.
At the heart of the IR35 tax reform is £700 million each year in tax avoidance by personal service companies (PSCs), according to HMRC.
A looming tax change may be the “death knell” for many one-man band offshore contractors, a leading north-east accountant has warned.
Aberdeen-based consultancy Hunter Adams recently convened 40 senior HR leaders from the oil and gas sector to debate the practicalities around the implementation of the IR35 reforms, due on April 6, 2020.
Addleshaw Goddard is strengthening its Aberdeen team with the appointment of a new legal director.
A tax expert has described the government’s five-week review of incoming IR35 legislation as “nowhere near long enough” to fully consider its complex range of issues.
Following the result of the general election, we can now expect to leave the EU at the end of January, although very little will change on that date as we will move into a transitional period when existing EU rules and trade terms continue to apply in the UK.
A government review has been launched into new tax rules expected to hit thousands of contractors across the oil and gas industry.
The new year always brings into focus those things which have been delayed or ignored over the last twelve months. In a corporate setting this can be damaging to a business and in the oil and gas industry, it could have significant compliance issues. With that in mind, there are some key areas oil and gas businesses should turn their attention to, to be fully prepared for entering 2020.
Optimism with reservation
North-east oil and gas workers face a 25% loss of earnings if new tax rules come into effect next year, an MP has warned.
The oil and gas industry has welcomed the new UK government as it looks ahead to a “transformational” sector deal and braces for tax changes for thousands of contractors.
The UK government's draft legislation for the Finance Bill 2019 spells out HMRC's plans to extend IR35 compliance obligations to end users in the private sector. Since its publication, familiarity and anxiety with IR35, also known as the 'off-payroll working rules', has escalated rapidly. Matthew Sharp, tax specialist at Fieldfisher, answers some of the questions that have emerged from greater awareness of the proposed legislation.
Tensions over new tax changes to offshore contractors arose yesterday as Cnooc International became one of the first North Sea firms to roll out its new off-payroll working rules.
Based on the current approach the answer is no. Throw in a deferred budget and an election to make it extra interesting and confusing.