Personal Service Companies 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.

 

UK Government

The findings of the recent Lord’s Select Committee regarding the role of personal service companies (PCS) has sparked discussion amongst the freelancing and contractor communities.

editor | 15 August 2012
/ / / /

In the Isle of Man the Income Tax Division on behalf of The Treasury have issued a consultation document with the aim of amending their current legislation in respect of PSC's (Personal Service Companies).

The BBC has reported that 148 of it's on screen presenters, actors or artists have been paid through their own personal service companies (limited companies) rather than as employees.

Key Taxation Changes for Umbrella Company contractors from 6th April 2012 and for Personal Service Companies (PSC's) from 1st April 2012:

‘Off-payroll’ public sector tax changes announced

The Chancellor George Osborne has announced significant changes that might affect people working in off-payroll public sector jobs.

The announcement will change the way that IR35 legislation is applied - meaning that public sector organisations and authorities including Whitehall departments, schools, the NHS, police and public sector broadcasters like the BBC and Channel 4 - will be responsible for interpreting and enforcing the rules from April 2017.

There will be no change for off-payroll workers in the private sector, although this could change in the future. 

editor | 7 February 2014
/ / /

HMRC have issued a note to confirm how the changes in the agency rules will interact with the current legislation in respect of working through an intermediary (commonly called IR35). It follows on from concerns that were raised during the consultation process of Onshore Employment Intermediaries: False Self-Employment. 

editor | 20 July 2012
/ / /

The high profile criticism of the BBC paying over 300 people through their own personal service companies (or PSC's) continues to rumble on. People are rumoured to include Jeremy Paxman and Fiona Bruce.

In the Budget it was proposed that all "controlling persons" must be on the payroll of that orgainsation by law.

The budget specifically addressed IR35 and said the following:

Pages