Contractors Articles

marketing | 10 December 2021
/ / /

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
/ / /

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
/ / / / /

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.

National Insurance Tax Increase
marketing | 10 September 2021
/ / / / /

The tax increase has been created by the Government to combat the NHS backlog. It will also fund social care initiatives, such as care home costs and disease prevention.

From April 2022, National Insurances contributions will rise by 1.25% for employees and the self-employed who earn over the minimum threshold. Employers NI contributions will also be increased by 1.25%.

The increase to NI contributions will only last 1 year, with rates returning to the current level in April 2023. However, the 1.25% tax is here to stay and will be known as the ‘Health and Social Care Levy’ from 2023.

New tax avoidance risk tool for umbrella contractors
marketing | 25 November 2021
/ / / /

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
/ / / /

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
/ / /

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.

One-in-three contractors working outside IR35 rules
marketing | 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).

Pages