The clock is counting down as the HMRC closes the net on the many thousands of self-employed workers facing higher tax bills after April 6th.
IR35 has been around since 1999, but changes in legistlation closes the tax loopholes of individuals, their clients and umbrella companies if implicated.
In that guise, individuals could decide whether they fell under IR35. In 2017, public companies had to decide, come April 6th, it is the time for private contractors/umbrella companies to decide.
Changes are expected to bring in £3.1 billion of additional tax revenues over the next 4 years alone.
The transport sector expect agency labour payroll costs to rise by 25% and temporary drivers costs will increase to clients by 20%.
Businesses that meet at least two of the following criteria are unaffected by the changes: –
For contractors doing work with these smaller companies, the rules remain the same – it is up to the individual to decide whether they fall under IR35.
Sole Traders are unaffected by the upcoming changes as sole traders are exempt from IR35 legislation.
“However, if your working hours are decided by someone else and you can be told what tasks you’re working on, where you’ll be working, and how you should work, then you may well fall under the ‘disguised employee’ banner, and therefore could be seen as being inside IR35.”
With the Brexit comedy unfolding, the PM change and finally an election, the Logistics sector held it’s breath in 2019. Few companies invested, opting if anything to batten down the hatches and be ready to tighten their respective belts should the economy dip.
Indeed growth was as minimal and the bricks and mortar retail sector was battered with many big names going to the wall. (JD Sports and Greggs excepted).
2019 was a challenging year in particular for: –
Fedex UK profits dipped 27%
TNT’s dipped 7%
Cult favourite Eddie Stobart was saved by DBAY
K&N had a HMRC investigation into its corporation tax savings
Sherwood & Sons say profits dip 75%
Devereux Developments went into the red.
James Shaw and Son, Green & Skinner Haulage, Stanian Transport, Alton Transport Pro Freight Solutions and Eulos EU all sadly called in the administrators.
Hilary Devey’s subsidiaries Shears Brothers, Intercounty Distribution and Pall-Ex London all incurred mounting losses.
Royal Mail, Unipart Logistics, Dartford DHL, UPS – Argos Contract and Serco narrowly avoided strike action.
It was not all bad news and the below companies show there are still grounds for optimism in the right sectors: –
Woodside Haulage seen profit rise by 20%
ET Holding 43% up year on year.
Erith Haulage seen profits rise seven-fold
United Pallet Network had an increase of profit by 5.6%
Reed Boardall seen a 13% increase in profits
NC Cammack had a record year – in its centenary.
NWF (Boughey Distribution) have seen volumes increase by 30%
CM Downtown had a number of large contract wins.
DPD seen a 13% increase in Black Friday related volumes and were voted best parcel carrier for the 7th year running.
Acquisitions – Gregory Distribution bought ARR Craib, Breedon has bought assets from Cemex.
Latest Brexit Timetable: –
LinkedIn Brexit Toolkit link: –
CILT Brexit Customs Compliance Link: –
Now the Withdrawal agreement has been passed Brexit Day is fast approaching. Time to dust off and update those Brexit plans. Please find our guide to the top 10 business Brexit risks: –
It’s been a week the Royal Family will want to forget – specifically the Royal Mail. Despite CEO Rico Black unveiling operating profits of £3-400mill in line with market expectations, his pessimistic outlook in terms of transformation progress, stiff competition and less letters being sent. It’s been a turbulent November for Royal Mail with first stopping the CWU strike and then getting fined £50 mill for unfair practices against Whistl/TNT in 2014.
All eyes on what happens next with cult favourite operator Eddie Stobart. A General Meeting is scheduled for December 6th to consider DBAY’s £55 million bid for a 51% stake. This takeover will see the return of William Stobart to the company as Executive Chairman. Observers wait with baited breath to see if Wincanton may have something to say on this development. Also waiting in the wings is former Chief Executive, Andrew Tinkler with his consortium of M&G and Ruffer.