Spring Statement: Small crumbs of comfort for contractors and umbrella workers

Rishi Sunak’s pared back Spring Statement contained only small crumbs of comfort for contractors and umbrella company workers.

A £3,000 increase in the threshold at which you start paying National Insurance (NI) contributions will help some low-earning employees. For many, however, this benefit will only slightly outweigh the simultaneous NI increase of 1.25%, and for some workers will only serve to reduce the loss.

Time to ‘name and shame’ non-compliant umbrellas?

The new CEO of the Freelancer and Contractor Services Association (FCSA) hinted that his organisation could start ‘naming and shaming’ non-compliant umbrella companies in a bid to boost standards.

Fraudsters targeting contractors in new tax refund scam

HMRC has warned contractors and other individuals not to share information about their online tax account after reports that scammers have been using people’s private information to submit bogus refund claims.

Criminals are using Government Gateway log in credentials to register for Income Tax Self-Assessment, before submitting a fake tax refund request and pocketing the repayment.

Companies call on Treasury to delay National Insurance rise Umbrella.co.uk

Business groups have called on the Chancellor Rishi Sunak to delay a planned increase to National Insurance amid rising prices and a slowdown in recruitment activity.

Make UK, which represents 20,000 manufacturing firms in the UK, called the £12bn tax boost ‘illogical and ill-timed’. They argued that April’s 1.25 percentage point increase to the tax on employees and employers should wait until the economy is on a firmer footing.