hmrc Articles

CIS Workers: Get Your Refund Back Fast With Umbrella.co.uk
marketing | 27 April 2021
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If you’re a sub-contractor working within the Construction Industry Scheme (CIS), you can get your annual tax refund back faster with Umbrella.co.uk. The average CIS rebate is around £2,000, but you can claim back even more with our tax experts.

Whatever you’ve got planned this summer - whether it’s a much-needed holiday, home or garden improvements or a real treat for your friends or family - make sure you’ve got the cash when you need it.

HMRC's new plan to prepare contractors for IR35 changes
marketing | 19 January 2021
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With just a few months to go before major IR35 reforms take effect in the private sector, HMRC is launching a package of support to help contractors get ready for the changes.

The new measures include webinars for contractors and large and medium-sized businesses that will be affected by the changes. Demand for these sessions seems high after four original workshops filled up in four days. HMRC has since added more more sessions for contractors and businesses.

New Government Covid Support Scheme Announced

Yesterday, the Chancellor announced new financial measures to support UK businesses and workers.

Primarily it seeks to address the concerns of the hospitality sector and those areas now deemed to be in Tiers 2 and 3. These new measures are due to come into effect after the current scheme ends on the 1st November and will run for 6 months.

Workers may be paid up to 67% of their wages up to a maximum of £2,100 per month if a business has to close under the Tier rules.

Following an independent review of the controversial loan charge, the Government has launched a consultation on how it can tackle the use of these arrangements.

The loan charge was applied to contractors that participated in so-called ‘disguised remuneration’ tax avoidance schemes. In many of these schemes, contractors were effectively paid using ‘loans’ which did not have to be repaid.

comparing umbrella companies

New HMRC research has revealed that some of the most attractive ‘umbrella’ deals on comparison and broker websites aren’t tax-compliant, meaning they could land you with a big bill further down the line.

The companies that come out on top of these comparison listings usually boast unbelievable take home pay figures, together with other ‘too good to be true’ advantages. In reality, the only way umbrella companies can achieve these ‘enhanced’ or ‘advanced’ rates is through tax avoidance.

Remember, YOU are responsible for paying the right amount of tax. The tax man will come after YOU if you try and cheat the system. And if a deal sounds too good to be true, YOU know that it probably is.

At Umbrella.co.uk, we’re proud of our track record of protecting clients through compliance. We’re accredited by the FCSA and APSCo, two of the largest and most prestigious staffing and employment bodies. We have also been approved as business partners by the Recruitment and Employment Confederation (REC).

IR35 Contractors: Watch Out For Unlawful Umbrellas

New IR35 rules due to take effect in the private sector from April 2021 could force thousands of limited company contractors to shutter their limited company and start using an umbrella company for the first time.

Joining an umbrella company is a tax efficient way to ensure IR35 compliance while also enjoying some for the benefits that come along with being an employee, such as holiday and sick pay.

Unfortunately some non-PAYE payment vehicles also describe themselves as ‘umbrellas’ and these schemes are often illegitimate.

HMRC’s IR35 Checker Can’t Decide on 20% of Cases
marketing | 17 December 2020
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HMRC’s controversial ‘Check Employment Status for Tax’ (CEST) tool is unable to provide an IR35 status for one-in-five contractor queries. 

With a few months to go before IR35 rule changes are applied to contractors in the private sector, HMRC data shows that their online IR35 checking tool was used almost a million times in the last year.

Of the 975,416 online checks completed, the tax authority found that 505,598 (52%) were deemed outside IR35, 281,099 (29%) were classed as inside IR35 and 188,719 (19%) were undetermined, meaning the tool could not provide a definitive answer.

Update from the FCSA : Recent issues emerging out of off-payroll reforms.
marketing | 15 October 2020
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Following concerns that umbrella companies might be affected by some ambiguity in the legislation emerging out of off-payroll reforms. HMRC and FCSA held a productive meeting yesterday to confirm that the new legislation was not designed to capture the relationship between umbrella companies and recruitment agencies. 

IR35 Rule Change Set for 2021

Controversial changes to off-payroll working (IR35) rules are set to come into force in April 2021, after MPs ignored a call to delay the changes until 2023.

Changes to the way IR35 rules are applied in the private sector were originally penned to take effect in April 2020, before pandemic-related uncertainty forced a stay of execution from lawmakers.

Recruiters and the Coronavirus Job Retention Scheme

Good Afternoon

We are awaiting further information from government in relation to the Government’s planned job retention scheme / furloughing workers receiving 80% income.

 We are hoping that the job retention scheme will be applicable to umbrella, but we do not actually know for certain at this stage. 

The situation is changing on a daily basis and we will keep you informed of all developments that we are aware of. 

Please find some useful information about Recruiters and the Coronavirus Job Retention Scheme here

Nick Holmes, CEO.

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