Industry News Articles

Contractor Umbrella Usages Expected to Soar in 2020

An overwhelming majority of recruiters expect umbrella company usage to soar in response to IR35 changes coming to the private sector.

A survey from the Association of Professional Staffing Companies (APSCo) found that 91% of professional recruiters thought that more contractors would shun Personal Service Companies (PSCs) in favour of umbrella arrangements due to the new IR35 rules which take effect in April 2020.

 

HMRC’s ‘Crusade Against Contractors’ to Net £27.7m
marketing | 12 August 2019
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Investigations into the contractor employment status could generate close to £30m according to figures released by HMRC.

The data shows that HMRC believes it can generate an extra £27.7m before investigations are concluded. The figure refers to ‘tax under consideration,’ which is an estimate of what HMRC would lose if it didn’t investigate.

Don’t Forget Your July 31 Payment on Account

If you pay taxes through HMRC’s Self Assessment system, you need to make sure you settle your second payment on account by the end of this month.

 

A payment on account is an advanced payment towards your tax bill, including income tax and Class 4 National Insurance if you’re self-employed.

 

NHS Locum Contractor Wins Partial IR35 Tax Case
marketing | 11 July 2019
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An IR35 ruling on a case involving a urologist who worked for two different hospitals could have important consequences for medics operating as locums and NHS off-payroll working rules more generally.

In the tax tribunal case between a locum urologist and HMRC, a judge ruled that one of the contractor’s hospital contracts was inside IR35, while off-payroll working rules did not apply in the other.

Limited Company Contractors Can Benefit From Open Banking

Open Banking is set to modernise bookkeeping for limited company contractors, with banking data integrated directly into online accounting software.

Umbrella.co.uk's limited company contractors all use FreeAgent’s cloud accountancy software to simplify their accounting. And with FreeAgent on the forefront of the Open Banking changes, bookkeeping is about to get even easier.

Open Banking is set to roll out to all FreeAgent customers soon, so we thought we would take an in-depth look at the changes and how they can benefit limited company contractors.

How to Protect Yourself From IR35
marketing | 23 August 2019
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When private sector organisations are charged with judging a contractor’s IR35 status from April 2020, more limited company contractors are likely to be classified as ‘inside IR35’.

To prevent paying more tax, contractors should take steps now to ensure compliance in the future.

In this blog post, we detail a few of the things you can do to give yourself the best chance of avoiding an inside IR35 judgement.

marketing | 1 August 2019
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Boris Johnson has won the tentative support of contractor and freelancer organisations, but experts have urged the new PM to improve the economy and support the self-employed.

The Association of Independent Professionals and the Self-Employed (IPSE) called on the Brexit-supporting leader to keep the economy flexible and competitive in the run up to Britain’s exit from the EU.

In a statement, they called on Mr Johnson to reform the tax system and scrap damaging changes to IR35, reduce the retrospective nature of the loan charge and help stamp out late payments among other policies. 

Finance Bill Confirms Private Sector IR35 Details
marketing | 15 July 2019
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The Treasury has published the Finance Bill 2019-20, which confirms a number of important details about the upcoming IR35 reforms in the private sector.

 

Ignoring some of the recent calls for the reforms to be delayed, the bill confirms that off-payroll rules will be extended to the private sector from 6 April 2020.

 

In line with the changes in the public sector, private sector clients will be responsible for assessing a contractor’s IR35 status. Previously, this responsibility lay with the contractor.

 

HMRC Pressed For IR35 CEST Tool Release Date
marketing | 3 July 2019
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HMRC is under pressure to say when the new improved IR35 ‘Check Employment Status for Tax’ (CEST) tool will be released, as stakeholders point out flaws with the current version.

 

The tax authority has confirmed that its CEST tool will undergo enhancements before IR35 reforms are extended to the private sector from April 2020.

 

But so far, little is known about what updates will be applied and when the new tool will be available.

 

Private Sector IR35 Consultation Responses Criticise Proposals

Respondents to HMRC’s consultation on proposed changes to IR35 rules in the private sector have highlighted a number of concerns about the plans.

Analysing consultation responses from a broad range of interest groups, ContractorCalculator found a number of recurring themes in the criticism. See article: https://www.contractorcalculator.co.uk/ir35_summary_responses_off_payroll_private_sector_551010_news.aspx

HMRC launched a consultation into off-payroll working rules in the private sector earlier this year. The planned reforms would affect limited company contractors working in the private sector from April 2020. 

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