HMRC's new plan to prepare contractors for IR35 changes
Editor | 19 January 2021
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With just a few months to go before major IR35 reforms take effect in the private sector, HMRC is launching a package of support to help contractors get ready for the changes.

The new measures include webinars for contractors and large and medium-sized businesses that will be affected by the changes. Demand for these sessions seems high after four original workshops filled up in four days. HMRC has since added more more sessions for contractors and businesses.

HMRC’s IR35 Checker Can’t Decide on 20% of Cases
Editor | 17 December 2020
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HMRC’s controversial ‘Check Employment Status for Tax’ (CEST) tool is unable to provide an IR35 status for one-in-five contractor queries. 

With a few months to go before IR35 rule changes are applied to contractors in the private sector, HMRC data shows that their online IR35 checking tool was used almost a million times in the last year.

Of the 975,416 online checks completed, the tax authority found that 505,598 (52%) were deemed outside IR35, 281,099 (29%) were classed as inside IR35 and 188,719 (19%) were undetermined, meaning the tool could not provide a definitive answer.

New Government Covid Support Scheme Announced

Yesterday, the Chancellor announced new financial measures to support UK businesses and workers.

Primarily it seeks to address the concerns of the hospitality sector and those areas now deemed to be in Tiers 2 and 3. These new measures are due to come into effect after the current scheme ends on the 1st November and will run for 6 months.

Workers may be paid up to 67% of their wages up to a maximum of £2,100 per month if a business has to close under the Tier rules.

April 2021 IR35: The key facts you need to know
Editor | 9 October 2020
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A controversial set of changes to off-payroll working (IR35) rules is due to take effect in the Private Sector from next April.

For contractors, the next few months represent a crucial period in which to prepare for the changes and minimise the financial impact of the tax changes.

To help you get ready for the April 2021 IR35 reforms, we have published a brief guide with only the key facts that you need to know about.

Rishi Sunak announces new measures to boost self-employed
Editor | 24 September 2020
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The Chancellor Rishi Sunak has unveiled a package of measures designed to support the economy, limit redundancies, and support small businesses and the self-employed during the ongoing coronavirus

Contractor guide: Moving from a limited company to umbrella model in 2021
Editor | 11 January 2021
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Many contractors are likely to close their limited companies this year and subscribe to an umbrella company to try and avoid punitive new IR35 rules.

For the most part, limited company contractors love the tax advantages and the autonomy that comes with running their own personal service company (PSC). But a major shift in the way that IR35 legislation is applied in the private sector could lock thousands of contractors into high-tax, low-benefit arrangements.

If you tend to work very closely with your private sector clients and are at risk of being trapped in an ‘inside IR35’ contract, then switching to an umbrella company model of working could be the best move you make in 2021.

HMRC: Don’t be hoodwinked by high take-home pay
Editor | 8 December 2020
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HMRC has warned contractors not to be fooled by unlawful tax and umbrella schemes advertising unusually high rates of take home pay.

As the deadline for sweeping IR35 reforms in the private sector draws closer, HMRC has launched a new campaign against tax avoidance and ‘dodgy’ umbrella schemes.

Update from the FCSA : Recent issues emerging out of off-payroll reforms.
Editor | 15 October 2020
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Following concerns that umbrella companies might be affected by some ambiguity in the legislation emerging out of off-payroll reforms. HMRC and FCSA held a productive meeting yesterday to confirm that the new legislation was not designed to capture the relationship between umbrella companies and recruitment agencies. 

World Mental Health Day 2020

It’s World Mental Health Day on 10th October. We’d like to take the opportunity to remind our contractor customers that you have access to a free professional counselling service with Umbrella Rewards. If you are affected by mental or emotional strain, especially in these difficult times, login to the  Umbrella Rewards Customer Portal and visit the 'Care & Support' area. 

Autumn Budget Could Cost Contractors

Reports suggest that the Chancellor Rishi Sunak could increase limited company contractor taxes to help reduce Britain’s COVID-19 debt.

The Autumn Statement isn’t expected until mid-to-late November at the earliest, but the rumour mill is already beginning to swirl - and tax hikes for companies and contractors look to be on top of the Chancellor’s agenda.

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