Contractors Articles

HM Revenue and Customs (HMRC) has released more information about the rules governing off-payroll contractors in the public sector.

HMRC updated its guidance on the rules, which have been in effect since April.

The updated guidance clarifies some sticking points that have confused contractors for months.

Since 6 April 2017, responsibility for determining IR35 status has passed from public sector contractors, operating through an intermediary, to the public sector body engaging the contractor.

Although the fundamental rules are the same, the April change is seismic in terms of how the rules are applied. 

Changes are coming to Public Sector contracting in April 2017.

The key area which could affect your company in April will be the following;

Change
From 1^st April this year many Limited Company Contractors working on a contract for a Public Sector institution will be classed as “Inside IR35” which means that the income from that contract will be taxed as if it was employment income. This can drastically increase the tax burden on the company.

A professional contractor employment services body has been scathing in its criticism of the changes to the off-payroll public sector changes, due to take effect in less than two months.

The Freelancer & Contractor Services Association (FCSA), which represents more than 110,000 contractors in the flexible workforce sector, said that the changes raise problems associated with accountancy, points of law and practicality. 

Nick Holmes, Umbrella.co.uk CEO, presented Jen Hughes, Regional Fundraiser, and the Wish Bear a cheque at our Wilmslow head office.

"Thank you so much to all the staff at Umbrella.co.uk. The money you have raised will help to grant a magical wish for a very deserving child and will give their family memories to last a lifetime."  Jen Hughes

“Umbrella.co.uk are proud to continue to support When You Wish Upon a Star during 2017. We are looking forward to some fun fundraising activities including the Wilmslow Triathlon, dress down days and an office Lego Fire Walk. I’d like to take this opportunity to thank all the team at Umbrella.co.uk for their generosity and enthusiasm.” Nicholas Holmes, CEO.