IR35 Articles

How do umbrella companies avoid IR35?

Umbrella companies allow contractors to achieve IR35 compliance. If a limited company contract is deemed ‘inside IR35’, contracting through an umbrella company is usually preferable.

This will become more important as an upcoming rule change will mean that many more contractors are caught out by IR35 legislation.

Government must address IR35 flaws, say Lords
marketing | 30 April 2020
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A House of Lord committee has concluded that the government needs to address a raft of unfair flaws in the IR35 system, before new rules are implemented in the private sector.

Lords on the Economic Affairs Finance Bill Sub-Committee found that IR35, which is supposed to tackle tax avoidance by people in ‘disguised employment’, has not worked properly since it was introduced 20 years ago.

IR35 Reforms Delayed for One Year
marketing | 18 March 2020
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The government has announced that changes to IR35 rules in the private sector will be pushed back by one year, due to disruption caused by the coronavirus.

 

IR35 Contractors: Act Fast to Avoid Wind-Up Tax

Limited company contractor that are caught under IR35 arrangements may need to act quickly if they want to close their companies and make the most of lucrative tax incentives.

If they wish to continue working flexibly, these contractors will also need to think carefully about how they offer their services, according to  Umbrella.co.uk Director Miles Grady.

“Because we offer limited company support, umbrella payment solutions and a business liquidation service, we are in the best position to help a growing group of customers that have been caught out by IR35,” Miles Grady said.

Umbrella.co.uk January Employee of the Month
marketing | 20 February 2020
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We are delighted to announce that Rebecca McCarthy, Business Development Executive at Umbrella.co.uk, has won the January 2020 Employee of the Month.

“Rebecca’s cheerful nature and helpful manner have proven to be a winning combination with our sales team and our contractors!

Rebecca will always go the extra mile to help our contractors in ensuring that their experience enrolling with Umbrella.co.uk is professional, pleasant and easy.

A popular team member, her happy nature shines through every day. 

Congratulations Rebecca, on an accolade well deserved!” Jane Thornhill, Sales Manager

 

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.

 HMRC Publishes Information about its IR35 CEST Tool
marketing | 24 March 2020
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HMRC’s Check Employment Status for Tax (CEST) tool has been a touchy subject for contractors that want to find out if they will be inside or outside IR35. 

The online tool was first introduced in 2017 to help contractors and their engagers judge employment status for tax purposes and, ultimately, how a contractor will be taxed.

The service asks a series of questions based on key legal criteria. It helps provide a judgement in most straightforward cases, with assistance in more complex cases available through a handbook and the HMRC call centre.

Bittersweet Budget for Struggling Contractors

Contractors praying for a delay to IR35 changes in the private sector will be disappointed by the Chancellor’s budget statement yesterday, but there were several positives that we can take away as well.

 

Eamonn Holmes Loses Expensive IR35 Case
marketing | 27 February 2020
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Eamonn Holmes has become the latest TV star to lose an expensive IR35 tax case with HMRC.

The veteran This Morning presenter enjoyed certain tax advantages because he was working as a contractor through a limited company.

However, after the taxman challenged his employment status in court, a judge ruled that the Holmes was effectively employed by ITV.

Half of contractors plan to quit workforce as Lords launch enquiry
marketing | 18 February 2020
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Half of all contractors plan to leave their posts ahead of scheduled changes to the way that IR35 ‘off-payroll’ rules are applied in the private sector.

Changes to the off-payroll rules are due to take effect in April, when large and medium sized companies will be made responsible for judging a contractor’s employment status and potentially subtracting income tax and national insurance from their monthly pay.

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