Government must address IR35 flaws, say Lords
Editor | 30 April 2020
/ / / /

A House of Lord committee has concluded that the government needs to address a raft of unfair flaws in the IR35 system, before new rules are implemented in the private sector.

Lords on the Economic Affairs Finance Bill Sub-Committee found that IR35, which is supposed to tackle tax avoidance by people in ‘disguised employment’, has not worked properly since it was introduced 20 years ago.

Government guidance issued on 4 April confirms that Company Directors are eligible to be furloughed and receive support through the Coronavirus Job Retention Scheme (CJRS).

Government guidance issued on 4 April confirms that Company Directors are eligible to be furloughed and receive support through the Coronavirus Job Retention Scheme (CJRS). This is welcome news as Directors could get paid 80% of wages, up to a monthly cap of £2,500.
 
If the furlough option is followed, the Director may not work for a minimum 3 week period and may only carry out statutory duties set out in the Companies Act 2006. The decision to furlough should be formally adopted as a decision of the company, noted in the company records and communicated in writing to the Director(s) concerned.
 
If you require further information regarding furlough, please email furlough@umbrella.co.uk or follow the following useful links:

Keep well and stay safe. We will continue to update you with any relevant information.

Limited company contractors: How to keep your PSC going through this crisis

The coronavirus outbreak presents a special kind of business crisis for limited company contractors.

Many industries have already experienced a sharp contraction and analysts suggest that things are going to get worse before they get better. Thankfully, however, they’re also forecasting a relatively quick turnaround. 

Businesses that were viable before the international pandemic will be viable again, limited company contractors just need to keep their personal service companies (PSCs) going for long enough to see the economy return to pre-crisis levels.

We would like to share some tips to help your business and your family keep going.

NEW COVID-19 support available in the Umbrella Rewards portal

The new Umbrella Rewards COVID-19 area has been created for you and your family within the portal. To access help and support during these challenging times simply log in to the Umbrella Rewards portal here.

The Job Retention Scheme - Update for Umbrella Contractor Employees

We hope you are staying safe in these testing times.
 
The Job Retention Scheme has been announced by the government to support those PAYE workers who have been laid off due to the coronavirus.
 
Unfortunately as a business we are restricted by the pace in which the government releases the detail. The Directors here at umbrella.co.uk are in talks with our employment lawyers continuously about the Job Retention Scheme as well as liaising with industry bodies like the FCSA & APSCo. See the latest response from the FCSA here.
 
Rest assured we are hoping to be in a position where those whose assignments are terminated due to Covid 19 are able to be furloughed. However, until we are comfortable with the detail we cannot provide you with confirmation.
 
Once we have the full detail from the government in terms of how furlough payments can be processed for umbrella employees, we will be back in touch with the information you need.

Umbrella.co.uk youngsters have been displaying rainbows in the windows of their homes during the coronavirus outbreak.

Are you wondering why there are rainbows popping up in windows around your local area too?

With social distancing and restrictions due to coronavirus, children are connecting with each other by creating colourful rainbows and displaying them in their windows for passers-by to see and to spread hope and cheer.

It is thought this rainbow display trend began in Italy, but has quickly caught on in other countries.