What are the changes?
From 1st April most limited company contractors working on a contract for a public sector institution will be classed as “Inside IR35” which means that the income from that contract will be taxed as if it was employment income. This can drastically increase the tax burden on the contractor’s limited company. See our IR35 Guide
A Public Sector organisation is any organisation that can be subject to a Freedom of Information Request including (but not limited to) the following:
- Government departments
- Executive agencies and non-departmental public bodies
- Police and fire authorities
- Local authorities
- Devolved administrations
- Educational establishments including universities
- Channel 4
- The Bank of England
What to do next?
We advise you start the switching process to our Umbrella Solution now.
The best way to do this is to move your limited company to us first whilst we register you to start our Umbrella Solution in April.
The Umbrella Solution will ensure you are compliant and benefit from a better ‘take home pay’ under the new rules. It will also give you full employment rights and all tax and national insurance payments are handled by us.
As part of the switchover service Umbrella Accountants will close down your existing Limited Company for FREE.
- Liaise with your agency and ensure that you have no breaks in payments
- Close down your existing company for FREE
- Provide you with our award-winning Umbrella customer service
For those contractors that carry out a mixture of Private and Public sector work we can fully support your contracts and calculate your revised income figures for each contract.
To avoid delays in your payments, get in touch with our team as soon as possible so that we can talk you through your options.
It's just 3 simple steps to switch