If you're a contractor worried about how today's budget may affect you and your family then the good news is PayMatters will be providing a summary as it happens.
The Agency Workers Directive is expected to mean that "contractors" working through Umbrella Companies will also be classified as workers in the Working Times Regulation 1998.
If you are paying a £15 (or more) CHAPs fee for same day payments with your Umbrella Company then you don't need to.
Often Umbrella Companies quote that if you are a contractor looking to join them then your contract must be be for a period of less than 2 years. This isn't stricly true.
An Umbrella Company is an organisation that contractors can join to ease their tax and pay issues.
Since the introduction of IR35 most companies or recruitment agencies that employ the services of contractors have required that they are invoiced for the work performed from a limited company.
HMRC have the following advice for contractors who expect their contract to be for a term greater than 2 years.
The recent Lords ruling in the case of Stringer v HMRC means that some contractors (so called permtractors) may be able to claim holiday pay from the client they are working for.
HMRC have just issued a new consultation document titled: "False self-employment in construction: taxation of workers". HMRC is requesting all comments on the proposals should reach them by 12 October 2009.
Strictly speaking Umbrella Companies don't charge a "fee". If they charged a fee then it would be subject to VAT. What they do do though is pass on an administration cost in calculating the profit on your contract. This is called the umbrella company's margin.