IR35 Articles

Could treasury extend IR35 reforms to private sector?
marketing | 6 November 2017
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Reforms to ‘disguised employment’ IR35 rules were introduced in the public sector this year. The new rules caused confusion amongst recruiters and lead to a take-home pay cut for many contractors.

Now the Treasury has dropped its strongest hint yet that similar reforms could be introduced in the private sector – with the potential to affect millions of contractors and freelancers. 

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. 

The chaotic introduction of the new IR35 rules
marketing | 16 June 2017
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The controversial changes to IR35 legislation, which affect contractors working in the public sector, have been in place for more than two months now. Already it is clear that the new tax policy has had a number of unintended consequences that have made life more difficult for contractors and the public sector organisations that want to employ them.

Richard Perch - umbrella.co.uk
marketing | 29 March 2017
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Umbrella.co.uk would like to congratulate Richard Perch on winning our 'Employee of the Month' award.

Winner of the 'Customer Services Survey' Chocolate Hamper
marketing | 6 March 2017
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Thank you to all our customers who participated in our customer services survey. Your feedback is important to us and will be used to make continuous improvements to our service.

All the participants were put in a hat and we are delighted to announce that Sarah is the winner of the chocolate hamper.

"I was really surprised and pleased when I heard I'd won the hamper. I think as a quality profession customer feedback is really important and it's nice to see that it's acted upon with Umbrella.co.uk. Thank you for all the help and support you provide." Sarah C

What should contractors pay themselves?
marketing | 16 September 2017
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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.

Updated IR35 rules for public sector contractors
marketing | 17 July 2017
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HM Revenue and Customs (HMRC) has released more information about the rules governing off-payroll contractors in the public sector.

HMRC updated its guidance on the rules, which have been in effect since April.

The updated guidance clarifies some sticking points that have confused contractors for months.

Since 6 April 2017, responsibility for determining IR35 status has passed from public sector contractors, operating through an intermediary, to the public sector body engaging the contractor.

Although the fundamental rules are the same, the April change is seismic in terms of how the rules are applied. 

marketing | 3 April 2017
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There will be a number of things changing this April, some of which will affect them negatively.

We assess the changes and suggest some tax-efficient ways for contractors to respond.

Tool: Check your IR35 status before April
marketing | 7 March 2017
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HMRC has launched a new tool designed to help contractors, and those that engage them, decide a worker’s IR35 status.

But with less than a month to go before a fundamental change in the way IR35 rules are applied, some experts have found cause for concern with the Employment Status Indicator tool.

A contractor’s IR35 status is all about whether the contract they are working on should be considered employed or self-employed for tax purposes. The Employment Status Service is supposed to give HMRC’s view of whether a contract is inside or outside IR35.

This will be of particular interest to limited company contractors working in the public sector because, from April, it will be the public sector organisations that decide on IR35 status instead of the individual. 

Congratulations to Stacey Moses who wins Umbrella.co.uk employee of the month

“Congratulations to our Contracts Manager Stacey Moses who has won Umbrella.co.uk’s Employee of the Month for February. Stacey consistently goes above and beyond, volunteering to take on new tasks enthusiastically. Stacey has proactively grown her knowledge and gained experience of several functions of the business over the past two years. Well done Stacey” – Peter Langham, Customer Services Director

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