Good morning. George Osborne is only a day away from taking his place behind the dispatch box and announcing his Budget plans. Speculation surrounding what Osborne has in store still overshadows all other news, with a suspected shake-up on how contractors are taxed being leaked to Bloomberg.
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Contractor shake-up tipped for the Budget
George Osborne is set to announce a crackdown on the use of contractors to avoid tax in his Budget, according to Bloomberg.
The new measure will require people hired off payroll to pay employment taxes that are due, a government source briefed on the matter informed Bloomberg. Osborne’s suspected IR35 shake-up will be applied across the public sector.
The government official also revealed that the public body will determine whether the worker should be taxed as employment income.
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Junior accountant claims he stole money to pay ransom
A junior accountant who claims he stole over £30,000 from his employer to send ransom money to Syria to free his father and brother from hostage has been jailed for 20 months.
According to the Yorkshire Post, Muhammad Mahfouz transferred large sums from the company account into his own funds while the senior accountant was away on holiday. He made two cash transfers worth £36,253 before company’s financial auditors discovered the fraud.
While there was some evidence he sent some money to his family in Egypt, Mahfouz’s barrister, Taryn Turner, said: “He is an intelligent man and a good worker, but his problem has been his addiction to gambling.”
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Increased personal finance advice concerns accountants
Two in four (36%) accountants have seen an increase in demand for advice from personal finance from clients, with inheritance planning being the biggest enquiry, according to new research from Bower Private Clients.
This increase in personal finance demand has become a growing concern for accountants as the research shows that 31% of accountants are worried that some of the advice they are giving goes beyond their core expertise. The accountants surveyed don’t see this demand letting up as 45% believe their financial adviser work will increase over the next 24 months.
“Given more demand for advice in what is an increasingly complex market, it is very important for accountants to have access to trusted partners. Advisers recognise that property wealth can offer a variety of solutions for their clients,” said Andrea Rozario, Chief Corporate Officer at Bower Private Clients.