Don’t have a breakdown over your pay breakdown

One of the questions regularly asked by contractors working through Umbrella.co.uk is about the “extra costs” which are payable by contract workers.  We are often told that our workers have previously found it hard to get to the bottom of what these costs are for, and that other payroll providers are reluctant to break them down for them.

Umbrella.co.uk prides itself on being upfront and transparent about any deductions that are made from income generated.  We will talk every potential new customer through the charges before you join us and will itemise them on your payslip each week so you know exactly where your money is going, and how the figure for net pay is arrived at.

What should contractors pay themselves?
Editor | 16 September 2017
/ / / /

Contractor pay is important to us. Many contractors work long hours and have to perform a lot of additional administration that isn’t involved in other lines of work. So it is important that the financial rewards match the burdens of the job.

Unfortunately, the tax framework for contractors is something of a minefield. Recognising the most efficient way to draw income from your contracts is far from simple.

Between umbrella contracting, dividends and IR35 legislation, it can be difficult to know the best way of doing things. We hope to clear it up in this blog post.

Back to school: Four new skills contractors can learn for free

It’s September again. The days are getting colder and the nights are drawing in.

For parents, it’s also the time of year for new school uniforms because the long summer break is coming to an end and the kids are heading back to school.

Now, with an explosion in the availability of free online courses on everything from cookery to investing in stocks and shares, learning new skills isn’t just for children anymore.

If you want to increase your earning power and run your contracting business more effectively, pick a course below and get learning.

Some public sector contractors missing out on 30% of income after IR35 changes

Some self-employed contractors lost 30% of their income in the wake of IR35 reforms that took effect in the public sector this in April.

As the dust settles around the changes IT recruitment company, CW Jobs, found that more than 70% of their clients saw a reduction in income after the IR35 reforms.

Of these contractors, a quarter saw a reduction close to 30%.

The IR35 reforms mean that contractors who work solely or primarily for public sector bodies are being taxed as if they were regular employees of that company. But are no receiving any of the accompanying benefits such as such pay or holiday entitlement. 

Three quarters of self-employed have no pension
Editor | 7 August 2017
/ / / /

A survey of British workers has revealed that almost three quarters (73 per cent) of self-employed people have no personal pension.

The survey revealed that self-employed Brits contribute less to their pensions each month, start saving for retirement later and are less likely to know what’s in their pension pot.

With questions raised about pension provision for contractors, the survey suggests that the pension industry is not meeting the needs of the self-employed community. 

Win a £1,000 iPhone X in time for Christmas*
Editor | 18 September 2017
/ / / /

This is the MUST HAVE iPhone that everyone’s been waiting for!

This brand new handset from Apple has barely been launched but we are already giving our agency consultants the chance to win one just by referring to Umbrella.co.uk between 18 September and 15 December 2017. *

With masses of amazing techie updates including wireless charging, 4k filming, a huge super retina screen and so much more, everyone wants to get their hands on one before Christmas.

It’s easy to refer to Umbrella.co.uk.  Simply email the contractors name, job title, phone number and pay rate to  newsignups@umbrella.co.uk   or call 01625 546 610.

Contractor confidence slips to record low
Editor | 7 September 2017
/ / / / /

The latest Freelancer Confidence Index, measured by the Association for Independent Professionals and the Self-Employed (IPSE), has shown the poorest outlook on record in the second quarter of 2017.

Despite a continuation of high day rates for contractors, the survey showed that only 19% of freelancers were confident about how their business would perform over the next year. This was down a whopping 9% on Q1 2017. 

Umbrella contractors, High paid contractors, Umbrella working, FCSA, Umbrella vs Limited company,

New research from the Freelancer and Contractor Service Association (FCSA) shows that umbrella working is being adopted by more and more high-end professionals in a range of sectors.

The research, which compares umbrella working in 2015 and 2017, also found that umbrella employees are enjoying better rates of pay and longer, more stable assignments.

In 2017, the FCSA found that 73% of umbrella workers were earning more than £15 per hour, compared with 53% in 2015.

The average length of an assignment more than doubled in two years from 14 weeks in 2015 to 29 weeks this year. The average length of employment with the umbrella company also increased from 30 weeks to 46 weeks. 

The new Tax Evasion Legislation for Recruitment Agencies
To prevent tax evasion, the new tax law makes recruiters criminally responsible.
 
Following on from recent tax scandals, including the Panama Papers and various loan write-off schemes, a new corporate “failure to prevent” offence is being introduced from 30th September with a severe penalty regime that should make all agencies sit up and take note.
 
With unlimited fines and the possibility of a criminal record a clear target is being painted on the backs of any part of the staffing supply chain that isn’t compliant. Of vital importance is the fact that an agency can be convicted even if no intent is established and the agency has not benefited financially from the arrangement.
 
 
 
 

 

Have you called in at the depot?

FreeAgent is a class leading piece of cloud accounting software and it has got there through constant improvements and innovations. 

We have attended a number of FreeAgent Partner events where the roadmap of future features and refinements has been shown and its comprehensive and far reaching with some really exciting developments ahead.

Pages