The Super Deduction Explained
Editor | 13 April 2021

What is a super deduction?

It allows companies to claim a 130% first year allowance (FYA) for investment incurred on qualifying plant and machinery acquired between 1 April 2021 and 31 March 2023.

Under the super deduction, for every pound a company invests, their taxes are cut by up to 25p.

The government announced the super deduction in the March 2021 Budget, in the hope that the scheme will encourage business investment and stimulate economic growth.

How to choose a compliant umbrella company
Editor | 26 March 2021
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Stricter IR35 rules mean that many limited company contractors are looking to switch to an umbrella working model.

Joining an umbrella company means that you pay tax at the same level as an ‘inside IR35’ limited company contractor, while also benefiting from holiday and sick pay entitlement.

When you choose an umbrella company, it’s imperative that you choose a compliant provider. Not doing your research at an early stage could cost you in the long run.

Umbrella compliance has hit headlines recently after HMRC warned contractors about a number of schemes offering higher than average rates of take home pay.

IR35 for tech contractors: What you need to know

Highly skilled contractors working in software development, IT project management and many other roles in technology are among those most at risk from changes to IR35 rules.

 

Although these roles tend to be well paid, the contracts are often structured in a way that means they fall ‘inside IR35’.

In this brief guide, we aim to answer the most important questions about IR35 to help you better understand the rules, how they might be applied and how you can avoid paying more in tax.

Coronavirus: Contractors Working More for Lower Day Rates
Editor | 17 February 2021
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New research from the Association of Independent Professionals and the Self-Employed (IPSE) suggests that contractors are lowering their day rates and working more to mitigate the impact of coronavirus disruption.

The study also points to rising concerns about the government’s tax policy, including upcoming changes to IR35 in the private sector.

Challenges and opportunities for umbrella workers in 2021

Last year was a challenging year for almost everyone in the UK, including umbrella workers. Many of these challenges are likely to continue this year, but there will also be opportunities for umbrella workers to prosper in 2021.

In this article, we look at some of the most important challenges and opportunities facing umbrella workers this year.

Limited Company Contracting in 2021/22? Time for a Rethink

Are you a contractor? Are you planning to work through your own limited company in the new tax year? New IR35 rules could mean that it’s time to rethink the ltd way of working.

Changes to off-payroll working (IR35) rules mean that contractors are more likely to be caught out. From the start of the 2021/22 tax year, private sector clients will be responsible for judging a contractor’s IR35 status for the first time.

Budget 2021: End of the road for inside IR35 contractors

A small cohort of limited company contractors had been holding onto hope that the Chancellor would use his recent Budget statement to once again delay a set of damaging IR35 reforms.

IR35 changes were originally due to be implemented in April 2020, but coronavirus-related disruption pushed the reforms back until April 6 2021.

Chancellor eyes limited company tax increase

The Chancellor Rishi Sunak is thought to be considering a sharp increase in the rate of corporation tax, as the Treasury attempts to curb borrowing in the wake of the coronavirus pandemic.

Reports suggest that the tax, which is paid on the profits of limited companies, could gradually increase from 19% to as much as 25% by the end of the current parliamentary term.

IR35 Contractors: Watch Out For Unlawful Umbrellas

New IR35 rules due to take effect in the private sector from April 2021 could force thousands of limited company contractors to shutter their limited company and start using an umbrella company for the first time.

Joining an umbrella company is a tax efficient way to ensure IR35 compliance while also enjoying some for the benefits that come along with being an employee, such as holiday and sick pay.

Unfortunately some non-PAYE payment vehicles also describe themselves as ‘umbrellas’ and these schemes are often illegitimate.

What does ‘inside IR35’ mean for contractors?
Editor | 27 January 2021
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With changes to off-payroll working rules imminent, experts predict a tidal wave of new ‘inside IR35’ judgements in the next few months. 

If you are a contractor working through your own limited company then you are at risk of being judged ‘inside IR35’ - but what does this mean for you and your bank account?

With changes to off-payroll working rules imminent, experts predict a tidal wave of new ‘inside IR35’ judgements in the next few months. 

If you are a contractor working through your own limited company then you are at risk of being judged ‘inside IR35’ - but what does this mean for you and your bank account?

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