tax Articles

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.

BBC Newsreaders Lose IR35 Tribunal
marketing | 2 October 2019
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HMRC has recorded a rare IR35 victory after a tribunal decided that three self-employed BBC newsreaders were operating as so-called ‘disguised employees’.

Allison Gallagher Umbrella.co.uk July Employee of the Month
marketing | 5 August 2019
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Congratulations to Allison Gallagher, Finance & HR Manager, on winning July Umbrella.co.uk Employee of the Month.

Allison has been invaluable and hard working member of the team for 9 years.

“Well done to a very deserving winner!" Simon Pearson, Finance Director.

Making Tax Digital deadline: Time is running out for contractors
marketing | 4 October 2018
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Contractors are running out of time to comply with HMRC’s new Making Tax Digital (MTD) initiative, which requires them to keep digital accounting records and use approved software to submit tax information to HMRC.

The first MTD deadline, for limited company contractors that earn over the £85,000 VAT threshold, is just a little over six months away.

From April 2019, these contractors will no longer be able to submit their VAT return manually with HMRC’s ‘direct tools’. Instead they will have to use HMRC-compliant software like FreeAgent or Xero to keep digital records and automatically submit their VAT returns. 

 

comparing umbrella companies
marketing | 12 May 2020
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New HMRC research has revealed that some of the most attractive ‘umbrella’ deals on comparison and broker websites aren’t tax-compliant, meaning they could land you with a big bill further down the line.

The companies that come out on top of these comparison listings usually boast unbelievable take home pay figures, together with other ‘too good to be true’ advantages. In reality, the only way umbrella companies can achieve these ‘enhanced’ or ‘advanced’ rates is through tax avoidance.

Remember, YOU are responsible for paying the right amount of tax. The tax man will come after YOU if you try and cheat the system. And if a deal sounds too good to be true, YOU know that it probably is.

At Umbrella.co.uk, we’re proud of our track record of protecting clients through compliance. We’re accredited by the FCSA and APSCo, two of the largest and most prestigious staffing and employment bodies. We have also been approved as business partners by the Recruitment and Employment Confederation (REC).

CIS worker? Why wait for your tax refund? You could be due £2,000 plus!
Most CIS workers have overpaid tax last tax year.  Why not let us prepare your 2019/20 self-assessment now to release any tax windfall you might be due? Maybe use it to book a nice summer holiday or pay off a debt that's weighing you down?
 
The refund you may get back depends on 3 things: Your CIS deductions, total earnings and business expenses. The average tax refund for our customers is £2,300. In some cases you can receive several years of overpaid refunds, if you're eligible. CIS tax can be claimed back for the previous 4 years.
 
Call our Customer Services Team on 01625 546 610 (option 1) or email customerservices@umbrella.co.uk before the end of May and we guarantee our discounted price of £100 + VAT!
marketing | 17 September 2019
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The controversial loan charge, which affects contractors who participated in ‘disguised remuneration’ schemes, could be scrapped after Chancellor Sajid Javid commissioned an official review into the tax.

The new review will conclude by mid-November to give taxpayers certainty ahead of the January Self Assessment deadline. It will be led by Amyas Morse, the former chief executive of the National Audit Office.

Christmas Plans: Don’t Forget Your Self-Assessment
marketing | 6 December 2018
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As Christmas draws closer, many contractors will be finalising their plans for the festive season.

You know who is in charge of wrapping presents, what time you’re going to travel to the in-laws and who’s cooking the turkey. But you shouldn’t forget about the tax return deadline in amongst all the merriment.

After all, you only have until 31 January to complete and pay your Self-Assessment.

Missed the First Loan Charge Settlement Deadline? Don’t Despair
marketing | 3 October 2018
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HMRC is targeting contractors that have participated in disguised remuneration ‘loan schemes,’ and time is running out to avoid an enormous tax bill next year. 

If affected contractors fail to make a settlement with HMRC by 5 April 2019, any outstanding ‘loan’ tax payments could be tacked onto their 2018/19 tax bill.

Unfortunately, the first settlement deadline has already passed. HMRC had instructed contractors to register their interest in settling and fill out relevant documentation before 30 September.

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