How do you know if you need to complete a tax return?
The tax year is from 6 April to 5 April the following year. You’ll need to send a tax return if in the last tax year:
Editor | 19 August 2021
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Editor | 13 July 2021
/ / /If you are employed in the UK, you will have a tax code. Tax codes tell employers and employees how much tax should be taken out of a pay packet before it goes to the employee.
Editor | 23 June 2021
/ / / / / /The government has committed to creating a new enforcement body to uphold vulnerable workers’ employment rights as part of the ‘Good Work Plan’.
Several existing organisations will be brought together for the new, single workers rights body. It will also be given new powers to deliver more effective protection for flexible workers, such as those working through umbrella companies.
Editor | 4 June 2021
/ / / /The REC, which represents professional recruiters in the UK, has called on HMRC to set up a hotline to allow workers to report bad practices by umbrella companies.
After recent reports of unscrupulous behaviour by some umbrella companies, the recruitment body joined several politicians in calling for tough new action to protect workers.
Editor | 20 May 2021
/ / / / / /Most umbrella companies meet all tax and labour laws and have nothing but good intentions when it comes to looking after their employees.
Unfortunately, whether it’s through inability or corruption, some umbrellas don’t meet the standards that employees expect of them.
If you suspect that an umbrella company is acting illegally or unethically, you should report them. We explain why and how you can do this below.
Editor | 9 August 2021
/ / /Recent changes to IR35 (off-payroll working) legislation mean that many contractors are looking to set up with umbrella companies in the UK.
Although working through an umbrella company is much easier than running your own limited company, it can be confusing if you haven’t done it before. That’s why we’ve prepared this introductory guide with some of the most important things you need to know before you join an umbrella.
Editor | 1 July 2021
/ / /Tax charities TaxAid and the Low Incomes Tax Reform Group (LITRG) have expressed concern about the number of ‘umbrella’ workers being pushed into tax avoidance schemes without their knowledge.
Speaking to the FT, the charities said that more and more workers were getting in touch to complain about non-compliant umbrella companies.
LITRG said some unscrupulous umbrella companies were failing to deduct tax on wages, effectively paying workers via ‘disguised renumeration’, which is banned by HMRC. Affected workers included agency nurses and supply teachers.
Editor | 9 June 2021
/ / / /Following the introduction of new off-payroll working (IR35) rules in April, research suggests that around one-third of limited company contractors are currently working on ‘outside IR35’ contracts.
Separate studies from Qdos and inniAccountants concluded that around one-in-three (33% and 36% respectively) contractors have been able to retain or secure a new commercial contract.
According to the inniAccounts survey, which took place in March and April, 35% of contractors said that that they were either classed as ‘inside IR35’ or blocked from working through a personal service company (PSC).
Editor | 28 May 2021
/ / /Industry experts have called on the government to regulate the ‘cartel-like’ umbrella market.
Former senior policy advisor to the Treasury, Rebecca Seeley Harris, and offpayroll.org founder James Poyser argue that urgent action is needed to stop scandalous companies ripping off workers and bringing the sector into disrepute.
Editor | 14 May 2021
/ / /Most umbrella companies that you’ll see online are legitimate businesses that pay the correct amount of tax and comply with relevant employment legislation.
Unfortunately, the sector is brought into disrepute by a small group of illegitimate companies that seek to defraud contractors and the state. It seems the latest attempt at doing this is with so-called ‘mini umbrella companies’.
A recent BBC investigation found that around 48,000 mini umbrella companies have been created in the UK in the last five years.
