Contractor Articles

Contractor productivity worth £5,000 per employee

A new report into contractor productivity has found that firms with at least 11% of their workforce as contractors are more productive, with each employee generating an extra £4,669 for their organisation on average.

Researchers from the Trinity Business School and the University of Derby said the results showed the important role that contractors can play in the UK’s recovery.

We are still here to support our customers

Umbrella.co.uk staff are still working hard to support our contractors and agency partners from home. We would like to thank you all for your patience and look forward to being safely back together in the office. If any of our agency partners would like some virtual team training or are just missing our faces, our business development team is available to support our agency partners. If you are a contractor with a query, be assured that our full customer service team is active. So, get in touch, they’re waiting to help you!

The Job Retention Scheme - Update for Umbrella Contractor Employees

We hope you are staying safe in these testing times.
 
The Job Retention Scheme has been announced by the government to support those PAYE workers who have been laid off due to the coronavirus.
 
Unfortunately as a business we are restricted by the pace in which the government releases the detail. The Directors here at  umbrella.co.uk are in talks with our employment lawyers continuously about the Job Retention Scheme as well as liaising with industry bodies like the FCSA & APSCo.  See the latest response from the FCSA here.
 
Rest assured we are hoping to be in a position where those whose assignments are terminated due to Covid 19 are able to be furloughed. However, until we are comfortable with the detail we cannot provide you with confirmation.
 
Once we have the full detail from the government in terms of how furlough payments can be processed for umbrella employees, we will be back in touch with the information you need.

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!
Eamonn Holmes Loses Expensive IR35 Case
marketing | 27 February 2020
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Eamonn Holmes has become the latest TV star to lose an expensive IR35 tax case with HMRC.

The veteran This Morning presenter enjoyed certain tax advantages because he was working as a contractor through a limited company.

However, after the taxman challenged his employment status in court, a judge ruled that the Holmes was effectively employed by ITV.

How do umbrella companies avoid IR35?

Umbrella companies allow contractors to achieve IR35 compliance. If a limited company contract is deemed ‘inside IR35’, contracting through an umbrella company is usually preferable.

This will become more important as an upcoming rule change will mean that many more contractors are caught out by IR35 legislation.

Government guidance issued on 4 April confirms that Company Directors are eligible to be furloughed and receive support through the Coronavirus Job Retention Scheme (CJRS).

Government guidance issued on 4 April confirms that Company Directors are eligible to be furloughed and receive support through the Coronavirus Job Retention Scheme (CJRS). This is welcome news as Directors could get paid 80% of wages, up to a monthly cap of £2,500.
 
If the furlough option is followed, the Director may not work for a minimum 3 week period and may only carry out statutory duties set out in the Companies Act 2006. The decision to furlough should be formally adopted as a decision of the company, noted in the company records and communicated in writing to the Director(s) concerned.
 
If you require further information regarding furlough, please email  furlough@umbrella.co.uk or follow the following useful links:

Keep well and stay safe. We will continue to update you with any relevant information.

Business Continuity Update from Customer Service - COVID-19

Umbrella.co.uk have of course been putting together comprehensive plans to ensure that we are fully prepared for whatever the next few months brings.  

The planning has considered all key parts of our business.  We consider these to be:

  1. ​Business partner relationship management
  2. New business consultation and registration
  3. Contracting with and onboarding of new clients
  4. Submission of timesheets and expenses
  5. Payroll
  6. Customer service

We obviously hope that the situation is unlikely and will not occur but, should the worst happen and significant numbers of staff are unable to attend the office, we are 100% confident that we will be able to maintain all the above processes with minimal disruption.

  • We have identified key staff who will manage business critical activity in all areas.  We will adapt to any given circumstances and flexibility exists for the key staff to either work from the office or from home with equal efficiency.
  • We are confident that we would not lose any capability to support and pay our contractor employees.  Our confidence is borne from the fact that all of our major softwares which are intrinsic to processes are web-based and can therefore be accessed from anywhere.  Those that sit on our internal servers would be available via VPN connections.  Our external IT administrators have provided sufficient hardware capacity for multiple staff to be accessing the servers via VPN simultaneously.  Mobile equipment for staff remote working is already in place and tested. 
  • Our telephone system is also web-based and all key staff will have access to it via their mobile phones using a SWiP app.  This means that inbound calls can be taken on staff mobiles wherever they are, without the caller even being aware that the call has been re-routed.  Routing calls through our server also allows us to maintain our practice of recording all in and outbound calls.

"Please be assured that we are confident of maintaining ‘business as usual’ as best we can.  We are not however complacent and will continue to monitor developments to ensure we can react quickly.  Please feel free to contact us if you have any questions" - Nick Holmes, CEO

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.

Umbrella.co.uk January Employee of the Month
marketing | 20 February 2020
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We are delighted to announce that Rebecca McCarthy, Business Development Executive at Umbrella.co.uk, has won the January 2020 Employee of the Month.

“Rebecca’s cheerful nature and helpful manner have proven to be a winning combination with our sales team and our contractors!

Rebecca will always go the extra mile to help our contractors in ensuring that their experience enrolling with Umbrella.co.uk is professional, pleasant and easy.

A popular team member, her happy nature shines through every day. 

Congratulations Rebecca, on an accolade well deserved!” Jane Thornhill, Sales Manager

 

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