Contractors Articles

93% of contractors thought about using an umbrella company last year
marketing | 13 January 2022
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Following the introduction of new IR35 rules in April, more than 90% of contractors thought about ditching their limited companies for umbrellas in 2021.

New rules affecting private sector clients mean that contractors are much more likely to be judged ‘inside IR35’ when starting a new contract.

marketing | 10 December 2021
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New figures show that HMRC pays most of its temporary workers through umbrella companies.

However, the UK tax authority has denied that it has a partial outside-IR35 hiring ban in place.

HMRC’s accounts, which run to the end of March 2021, show that the taxman engaged 403 temporary workers in one year. Of this number, only 15 were classed as ‘inside IR35’, which means they were operating through a limited company, but paying tax and National Insurance contributions like an employee.

Autumn 2021 budget - Contractor Highlights

Last week the Chancellor of the Exchequer, Rishi Sunak revealed the Autumn 2021 budget.

We’ve created a summary to highlight the elements most relevant for you.

Read on to learn what’s changing.

Demand for contractors soars in key sectors
marketing | 13 October 2021
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Employer demand for contractors is soaring in key sectors, including IT and construction, as the economy bounces back from the coronavirus pandemic.

Competition for contractors has been intensified by a number of factors, including long-term labour shortages and an IR35 exodus from the contracting sector.

Recruiter trade body REC said that there was ‘fierce competition’ in the jobs market in September, where labour shortages contributed to issues in petrol stations and on supermarket shelves.

Is IR35 responsible for the UK’s HGV driver shortage?
marketing | 4 October 2021
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The HGV driver shortage is wreaking havoc on UK supply chains. It’s estimated that Britain needs an extra 100,000 HGV drivers and the shortage is resulting in long queues at petrol pumps and missing stock on supermarket shelves.

Government opens umbrella working consultation

Contractors and agencies are being encouraged to share their views in a new consultation on umbrella working.

Umbrella companies support the flexible labour market by providing employment services for temporary workers.

New tax avoidance risk tool for umbrella contractors
marketing | 25 November 2021
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HMRC has launched a new tool to help contractors assess whether thei

IR35 changes drive one-third of contractors out of self-employment
marketing | 31 October 2021
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New research shows that more than a third of contractors have left self-employment because of changes to off-payroll working (IR35) rules.

A survey published by the Association of Independent Professionals and the Self-Employed (IPSE) shows that 35% of contractors no longer work for themselves.

Self-employed pension saving dips to record low
marketing | 8 October 2021
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Self-employed pension savings hit a record low in the year leading up the pandemic, according to figures released by HMRC.

Whether it’s through an umbrella company like Umbrella.co.uk, as a sole trader or through a limited company, more people are choosing to work for themselves. But the amount that self-employed workers pay into their pension pots is on the decline.

How much will the dividend tax rise cost contractors

The government has announced several tax increases on contractors and employees as it looks to bridge the funding gap in health and social care.

From April 2022, National Insurance Contributions (NICs) for employees and employers will increase by 1.25% along with a matching increase in the tax paid on dividends.

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