Contractors Articles

Majority of Public Sector Contractors Ruled Inside IR35
marketing | 20 May 2019
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Ahead of reforms to private sector IR35 rules, new research shows that several public sector organisations are, in the majority of cases, judging contractors to be inside IR35.

Since 2017, public bodies have been responsible for deciding whether a contractor is truly self-employed or whether they should be taxed as if they were an employee of the firm.

The rules apply to limited company contractors who, before the rule change, were responsible for judging their own IR35 status.

From April 2020, the same reforms will be introduced in the private sector, so that organisations with 50 or more employees will be responsible for judging a contractor’s IR35 status.

Treasury: 2019 Loan Charge Will Go Ahead Despite Appeals
marketing | 4 April 2019
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The Treasury has confirmed that the 2019 Loan Charge will take effect this week, despite appeals from MPs, members of the House of Lords and Loan Charge campaigners.

HMRC released a last-minute statement on Wednesday, reminding Loan Scheme users that they have an obligation to pay the tax owed.

The statement urged users of disguised remuneration schemes to come forward and settle their debts by April 5. The tax authority also said that ‘flexible’ payment options are available to those that worry they will not be able to pay.

 

Fewer Contractors Saving for Retirement

New research suggests that the pensions system is broken for independent workers, with a 12% increase in the number of contractors that aren’t saving for retirement.

The survey of 1,000 contractors shows that almost two-thirds of people that work for themselves avoid paying any money into a personal pension scheme.

That equates to almost three million contractors that may not have enough money when they finally give up work.

marketing | 12 March 2019
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Large and medium sized private sector organisations have just over a year left to prepare for important changes to IR35 legislation.

When similar changes were introduced in the public sector in April 2017, many organisations were woefully underprepared. In the most serious cases, public sector organisations made costly errors and saw major projects delayed.

Getting ready for April 2020 requires effective leadership and co-operation across departments and business areas.

In this blog post, we will provide a brief introduction to the changes before detailing what different teams can do to prepare.

 

How Brexit Will Affect Contractors
marketing | 12 February 2019
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Brexit day is fast approaching and there is little certainty over how the negotiations will turn out.

Whatever happens, Brexit is likely to impact contractors in the UK. There may be some benefits in the short and long term, but many contractors are also likely to face some restrictions on their work.

In this blog post, we investigate the most likely Brexit outcomes and how they will affect contractors in the UK.

HMRC Wins Case Over Contractor Loan Scheme
marketing | 4 April 2019
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HMRC has won a tribunal case against a contractor loan scheme promoted by Hyrax Resourcing Ltd.

Hyrax Resourcing will now be forced to disclose the details of 1,180 ‘high earners’ that use the scheme and help the tax authority claim back more than £40 million in unpaid taxes.

The scheme in question was a disguised remuneration tax avoidance scheme that paid users in loans so that they could avoid paying income tax and National Insurance contributions on their earnings.

 

Umbrella.co.uk staff support Food Friend Wilmslow
marketing | 27 March 2019
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The staff at Umbrella.co.uk have collected and delivered much needed items to our local food bank, Food Friend, based at St Bartholomews in Wilmslow.

Food Friend is run and organised by St Bartholomew's Church and provides short term assistance and support to individuals and families in Wilmslow. Illness, disability, family breakdown or the loss of a job could happen to any of us.

 

How the Spring Statement affects contractors

The Chancellor Philip Hammond delivered his annual Spring Statement on Wednesday, providing an update on the state of the economy and announcing several minor policy updates.

Although the Spring Statement doesn’t have the kind of wholesale policy announcements that are characteristic of the Autumn Budget, the Chancellor did have some important news for contractors and professional employment service providers.

Here’s a quick breakdown of the most important issues for the sector.

HMRC Launches Private Sector IR35 Consultation
marketing | 6 March 2019
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HMRC has launched a fresh consultation on changes to off-payroll Intermediaries Legislation (IR35), due to take effect in the private sector from April 2020.

The changes would see reforms introduced in the public sector in 2017 extended to the private sector.

The change will affect contractors that operate through an intermediary like a limited company or personal service company (PSC).

Instead of judging their own IR35 status, the private sector organisation that engages the contract will make this decision. It could mean that more contractors are deemed ‘inside IR35’ and liable to  pay income tax and National Insurance contributions.

Umbrella.co.uk supporting East Cheshire Hospice
marketing | 8 February 2019
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Umbrella.co.uk are delighted to be able to present a cheque for £2912.80 to the East Cheshire Hospice ( www.eastcheshirehospice.org.uk) this week. 

The Hospice has long been a cause Umbrella.co.uk have liked to support and the funds raised from recent activities will we hope go in some small way to supporting the fantastic work they do. 

The cheque is shown being presented by Peter Langham, Director of Umbrella.co.uk to Kate Bowmar of East Cheshire Hospice.

 

 

 

 

 

d the funds raised from recent activities will we hope go in some sma The cheque issented by Peter Langham, Director of Umbrella.co.uk to Kate Bowmar of East Cheshire Hospice.

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