Members News
'No fault’ system represents biggest change to divorce law for 50 years
Changes to the divorce laws in England and Wales will see the introduction of a "no fault" system. Under current rules, one spouse must allege adultery or unreasonable behaviour by the other in order to pursue a divorce. The new law will introduce a ‘no fault’ system, whereby a spouse only needs to state that the marriage has broken down irretrievably. Rayma Collins, Partner & Head of Family Law at South East law firm Furley Page, said: “This is the most significant overhaul to the divorce laws since the Divorce Reform Act was introduced in 1969.
Small businesses face confusion over new tax legislation, warns MHA MacIntyre Hudson
Small businesses are facing confusion over the planned introduction of new tax rules affecting members of their teams working off-payroll, Kent-based chartered accountants MHA MacIntyre Hudson has warned.
Already in force in the public sector, the IR35 (off-payroll working) legislation is designed to ensure off-payroll workers pay broadly the same tax and National Insurance contributions as their employee colleagues.
The legislation, which is due to be extended to cover private sector companies, defines off-payroll workers as being those who work for a client through their own intermediary, but who would be an employee if they were providing their services directly. An intermediary can be a worker’s own limited company – known as a personal service company (PSC) – a partnership, or another individual. People working through an intermediary pay Income Tax and National Insurance contributions in a different way to an employee.
“In practice, it is the disagreement between the parties on where and what blame is being ascribed which makes agreeing the terms of a divorce so painful and time consuming.
“It is hoped that the new law will make the process less acrimonious by replacing the ‘fault-based’ divorce system, which often creates animosity between the two parties and can have a particularly harmful effect when children are involved.” The new rules will include a minimum timeframe of six months from petition stage to decree absolute - the legal document that ends a marriage. Rayma said: “Divorce can be a very stressful time during which emotions are running high. The introduction of a minimum timeframe will ensure a sufficient cooling-off period, giving couples the time to reflect on their decision before completing the divorce. In my experience, this is a very useful mechanism which gives both parties time to consider their options and can lead to a more amicable outcome once the dust has settled.”
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Thinking Business
Jon Harvey, Employment Tax Supervisor at MHA MacIntyre Hudson, warned that HMRC’s consultation on the proposed application of IR35 legislation to private companies shines a spotlight on the additional complexities of rolling out the changes to the private sector.
He said: “It’s always been the intention to exclude small businesses from the rules, but there is still no watertight definition of what will constitute a small business. In the public sector the size of the organisation is irrelevant as the rules apply to all. However, in the private sector the size of the business will be a crucial factor. “A legal no-man’s land beckons for small private companies: do they need to implement IR35 rules or not?” Jon outlined how the current consultation suggests taking the definition of a small company from the Companies Act 2006, but this only applies to limited companies. He warned: “If you’re a small unincorporated business, for
example a sole-trader or a partnership, you probably need to tread very carefully and take appropriate advice before concluding you’re safe from IR35.
“The consultation proposes defining whether an unincorporated business is small by the number of its employees. This is a questionable approach given a company might qualify as small only if it defines members of its workforce as off-payroll, the whole crux of the issue IR35 is trying to address.” Jon added the consultation also raised a significant question over timing, with HMRC pledging the legislation to introduce IR35 changes will be in a draft Summer Finance Bill, while the consultation runs to 28 May 2019. “This leaves a very short window for it to be incorporated into any draft Summer Finance Bill, which would have to be published soon after the deadline to allow time to pass through parliament,” said Jon.
“It’s always been the intention to exclude small businesses from the rules, but there is still no watertight definition of what will constitute a small business.”
Partnership is appointed
Kent Invicta Chamber Patrons Lee Evans Partnership have been chosen as the Architect for the proposed redevelopment of Folkestone College. Following a tender process, design competition, and interview, LEP was chosen by the EKC Group based on their approach to the development and its alignment with the Group’s vision for the future of the site. The redevelopment will help
rationalize and consolidate the buildings on the site, and will include a new welcoming entrance frontage on Shorncliffe Road. The works will be divided into strategic phases, allowing the College to remain operational throughout the works, minimising disruption for
students, and maintaining a safe and nurturing environment. The new redesigned college site will provide enhanced facilities in modern and inspiring spaces, providing a wealth of opportunities for the local community.