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.

Support package announced for self-employed, but it won’t help everyone

Most of Britain’s five million self-employed workers breathed a sigh of relief yesterday when the government announced that they would receive taxable grants to make up for lost income during the coronavirus pandemic.

Chancellor Rishi Sunak announced that freelancers and contractors would be able to claim up to 80% of their profits from the state if they could prove that they had been adversely affected. But the grants will be capped at £2,500 per month and not everyone will be able to claim them - including contractors that work through a limited company.

In this blog post, we include more details about the support package and who is eligible to receive it. There’s also some good news for limited company contractors that can’t claim the self-employed support.

Working out at home is the new going out. How to weather the storm at home.

Home online video workouts surge amid coronavirus self-isolation, social distancing and working from home.

If you’re feeling well then there are many good reasons for keeping up regular exercise. It will help reduce your stress, improve your mental health and increase your immunity. 

Even the 1980s fitness guru Diana Moran, also known as the Green Goddess, is making a comeback to BBC Breakfast in a bid to help the over-70s stay active while they’re self-isolating. Another blast from the past, Mr Motivator and his neon workout gear, is doing his bit to keep the nation fit https://metro.co.uk/video/mr-motivator-wants-moving-self-isolation-21358...

IR35 Reforms Delayed for One Year
Editor | 18 March 2020
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The government has announced that changes to IR35 rules in the private sector will be pushed back by one year, due to disruption caused by the coronavirus.

 

CIS worker? Why wait for your tax refund? You could be due £2,000 plus!
Most CIS workers have overpaid tax last tax year.  Why not let us prepare your 2019/20 self-assessment now to release any tax windfall you might be due? Maybe use it to book a nice summer holiday or pay off a debt that's weighing you down?
 
The refund you may get back depends on 3 things: Your CIS deductions, total earnings and business expenses. The average tax refund for our customers is £2,300. In some cases you can receive several years of overpaid refunds, if you're eligible. CIS tax can be claimed back for the previous 4 years.
 
Call our Customer Services Team on 01625 546 610 (option 1) or email customerservices@umbrella.co.uk before the end of May and we guarantee our discounted price of £100 + VAT!
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.

Recruiters and the Coronavirus Job Retention Scheme

Good Afternoon

We are awaiting further information from government in relation to the Government’s planned job retention scheme / furloughing workers receiving 80% income.

  We are hoping that the job retention scheme will be applicable to umbrella, but we do not actually know for certain at this stage. 

The situation is changing on a daily basis and we will keep you informed of all developments that we are aware of. 

Please find some useful information about Recruiters and the Coronavirus Job Retention Scheme here

Nick Holmes, CEO.

 HMRC Publishes Information about its IR35 CEST Tool
Editor | 24 March 2020
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HMRC’s Check Employment Status for Tax (CEST) tool has been a touchy subject for contractors that want to find out if they will be inside or outside IR35. 

The online tool was first introduced in 2017 to help contractors and their engagers judge employment status for tax purposes and, ultimately, how a contractor will be taxed.

The service asks a series of questions based on key legal criteria. It helps provide a judgement in most straightforward cases, with assistance in more complex cases available through a handbook and the HMRC call centre.

Bittersweet Budget for Struggling Contractors

Contractors praying for a delay to IR35 changes in the private sector will be disappointed by the Chancellor’s budget statement yesterday, but there were several positives that we can take away as well.

 

IR35 Contractors: Act Fast to Avoid Wind-Up Tax

Limited company contractor that are caught under IR35 arrangements may need to act quickly if they want to close their companies and make the most of lucrative tax incentives.

If they wish to continue working flexibly, these contractors will also need to think carefully about how they offer their services, according to  Umbrella.co.uk Director Miles Grady.

“Because we offer limited company support, umbrella payment solutions and a business liquidation service, we are in the best position to help a growing group of customers that have been caught out by IR35,” Miles Grady said.

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