private sector Articles

UK wages up 6%, but fall in real terms

UK wages rose in the three months to October, but continued falling in real terms amid the ongoing cost of living crisis.  

Figures also revealed that while unemployment is still low, it increased slightly to 3.7%. Meanwhile the number of open job vacancies fell by 65,000 to 1.19 million.  

The Office for National Statistics figures show that both average total pay (including bonuses) and regular pay (excluding bonuses) increased by 6.1% between August and October 2022.  

What does ‘inside IR35’ mean for contractors?

With changes to off-payroll working rules imminent, experts predict a tidal wave of new ‘inside IR35’ judgements in the next few months. 

If you are a contractor working through your own limited company then you are at risk of being judged ‘inside IR35’ - but what does this mean for you and your bank account?

With changes to off-payroll working rules imminent, experts predict a tidal wave of new ‘inside IR35’ judgements in the next few months. 

If you are a contractor working through your own limited company then you are at risk of being judged ‘inside IR35’ - but what does this mean for you and your bank account?

April 2021 IR35: The key facts you need to know

A controversial set of changes to off-payroll working (IR35) rules is due to take effect in the Private Sector from next April.

For contractors, the next few months represent a crucial period in which to prepare for the changes and minimise the financial impact of the tax changes.

To help you get ready for the April 2021 IR35 reforms, we have published a brief guide with only the key facts that you need to know about.

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.

Half of contractors plan to quit workforce as Lords launch enquiry

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.

MPs: HMRC responsible for Government’s IR35 non-compliance

An influential group of MPs has blamed HMRC for ‘widespread non-compliance’ with IR35 rules in Government departments.

A new Public Accounts Committee (PAC) report on IR35 in the public sector has concluded that HMRC rushed the implementation of reforms and didn’t give public bodies enough guidance through the process.

IR35 rules were changed in the Public Sector in 2017 and the rules were extended to the Private Sector in 2021.

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.

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.

IR35 Reforms Delayed for One Year

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.

 

Our new recruits here at Umbrella.co.uk are ready for IR35! Are you?
marketing | 17 February 2020
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Contact us here at Umbrella.co.uk for your Umbrella solution.

We can help you with the transition and get you set up so you can use our great rewards package BEFORE you are even payrolled with us!

Call 01625 546 610. 

See our contractors’ guide to IR35 here.

 

 

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