At the end of this strangest of years, Umbrella’s traditional end of year celebrations and awards ceremony have for the first time been held in our offices! Conscious of our status as a holder of a COVID-secure employer accreditation, the prize winners were informed by email and were invited to make the solo walk to CEO Nick Holmes’ office to collect their trophy and accept the praise heaped on them! The walk along ‘Winners’ Way’ was accompanied by appreciative cheering and support from their colleagues!
Umbrella.co.uk staff are still working hard to support our contractors and agency partners from home. We would like to thank you all for your patience and look forward to being safely back together in the office. If any of our agency partners would like some virtual team training or are just missing our faces, our business development team is available to support our agency partners. If you are a contractor with a query, be assured that our full customer service team is active. So, get in touch, they’re waiting to help you!
HMRC has narrowly lost a First Tier Tribunal (FTT) case, in which the tax authority tried to make an employee pay outstanding PAYE liability on a bonus paid just before the company went into liquidation. And the case could have important consequences for some owner managers.
Unless it is appealed by HMRC, the tribunal could mean that more small business owner managers that are about to go into liquidation could make payments to themselves without paying all the tax liability to the crown.
HMRC has published the cost of administering IR35 and an estimate of the tax they think they’d lose if it was abolished. This despite the cost of administering IR35 greatly outweighing the cash collected from IR35 investigations.
The report estimates the cost of administering IR35 to be £16m and the tax that would be lost if it was abolished to be £550m.
From April 2016 Umbrella Company Workers in Scotland could be subject to different rates of Income Tax (PAYE) than other umbrella company workers in the rest of the UK. This follows new legislation via The Scotland Act 2012.
All the team at Umbrella.co.uk would like to wish you a happy festive season and a prosperous new year.
This year has been turbulent and challenging for all and we are excited to welcome in the New Year and are hopeful that normality is within reach.
We hope you are staying safe in these testing times.
The Job Retention Scheme has been announced by the government to support those PAYE workers who have been laid off due to the coronavirus.
Unfortunately as a business we are restricted by the pace in which the government releases the detail. The Directors here at umbrella.co.uk are in talks with our employment lawyers continuously about the Job Retention Scheme as well as liaising with industry bodies like the FCSA & APSCo. See the latest response from the FCSA here.
Rest assured we are hoping to be in a position where those whose assignments are terminated due to Covid 19 are able to be furloughed. However, until we are comfortable with the detail we cannot provide you with confirmation.
Once we have the full detail from the government in terms of how furlough payments can be processed for umbrella employees, we will be back in touch with the information you need.
The Chancellor. George Osborne, will deliver his Autumn Statement on 25th November 2015 and rumours have just been leaked that he is considering sweeping changes that will adversely affect UK contractors.
The Autumn Statement is in effect a mini budget.
Contractor One Month Rule
Over the weekend there were various reported leaks that The Chancellor is considering a new rule that would mean contractors who take a contract longer than one month would have to be paid PAYE by their end client after just one month. It is unclear if it would be from day 1 if it was known at the start that the contract would be for more than one month.
Some potentially good news for contractors who operate through their own limited company is that HMRC have relaxed their deadline for Limited Companies (with less than 50 employees) that are adjudged to be late filing their monthly PAYE returns and hence liable for a penalty.