Private Sector IR35 Consultation Responses Criticise Proposals

Respondents to HMRC’s consultation on proposed changes to IR35 rules in the private sector have highlighted a number of concerns about the plans.

Analysing consultation responses from a broad range of interest groups, ContractorCalculator found a number of recurring themes in the criticism. See article: https://www.contractorcalculator.co.uk/ir35_summary_responses_off_payroll_private_sector_551010_news.aspx

HMRC launched a consultation into off-payroll working rules in the private sector earlier this year. The planned reforms would affect limited company contractors working in the private sector from April 2020. 

One-in-Five Sole Traders Needlessly Preparing for IR35 Reforms

New research indicates that one-in-five UK sole traders are preparing for the upcoming changes to off-payroll working rules in the private sector, despite the fact that the legislation will not affect them.

Completed by the Freelancer & Contractor Services Association (FCSA) professional body and cloud accounting software provider FreeAgent, the research found that 18% of sole traders were making preparations for the new rules when they would not affect their business type.

Congratulations to Suzi Kinsella on winning May Employee of the Month
Editor | 3 June 2019
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Congratulations to Suzi Kinsella on winning May Umbrella.co.uk Employee of the Month.

"Well done to Suzi who is a much valued member of the Customer Services team both by her colleagues and our customers. Suzi sets a perfect example of excellent customer service for the rest of the team.

Everyone in the business knows they can leave anything in her very capable hands. Keep up the good work." Adam Connell, Customer Services Manager.

European Court Rules That Employers Must Track Worker Hours

In a new ruling that could affect agencies and other employers, The Court of Justice of the European Union (CJEU) has confirmed that employers need to have systems in place to accurately record hours worked by a worker each day.

In a case between the Federación de Servicios de Comisiones Obreras (CCOO) and Deutsche Bank SAE, the court ruled that employers need to have records of hours worked to ensure compliance with the Working Time Directive.

Contractors Stung by Dividend Allowance Cut

After wrapping up their tax affairs for the 2018/19 tax year, many limited company contractors will only now be waking up to the reality of the 2018 dividend allowance cut, which saw the tax-free dividend allowance drop from £5,000 to £2,000.

In 2018/19, this tax-free allowance was applied to the first £2,000 of dividend income. Above £2,000, dividends are taxed at a flat rate according to the tax band they fall into.