tax Articles

Companies call on Treasury to delay National Insurance rise Umbrella.co.uk

Business groups have called on the Chancellor Rishi Sunak to delay a planned increase to National Insurance amid rising prices and a slowdown in recruitment activity.

Make UK, which represents 20,000 manufacturing firms in the UK, called the £12bn tax boost ‘illogical and ill-timed’. They argued that April’s 1.25 percentage point increase to the tax on employees and employers should wait until the economy is on a firmer footing.

Autumn 2021 budget - Contractor Highlights

Last week the Chancellor of the Exchequer, Rishi Sunak revealed the Autumn 2021 budget.

We’ve created a summary to highlight the elements most relevant for you.

Read on to learn what’s changing.

How to go from sole trader to limited company contractor
marketing | 22 September 2021
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There are a number of advantages to operating through a limited company rather than as a sole trader. Working through a limited company is more tax-efficient. It also gives you limited liability, so you won’t be held personally responsible for business debts.

Autumn Budget Could Cost Contractors

Reports suggest that the Chancellor Rishi Sunak could increase limited company contractor taxes to help reduce Britain’s COVID-19 debt.

The Autumn Statement isn’t expected until mid-to-late November at the earliest, but the rumour mill is already beginning to swirl - and tax hikes for companies and contractors look to be on top of the Chancellor’s agenda.

comparing umbrella companies

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).

Self-Assessments: late payment fines still apply, even when delaying your filing

HMRC have moved the deadline for online self-assessment filings from 31st January to 28th February 2022.

Is IR35 responsible for the UK’s HGV driver shortage?
marketing | 4 October 2021
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The HGV driver shortage is wreaking havoc on UK supply chains. It’s estimated that Britain needs an extra 100,000 HGV drivers and the shortage is resulting in long queues at petrol pumps and missing stock on supermarket shelves.

What is a tax code and do I have one?
marketing | 13 July 2021
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If you are employed in the UK, you will have a tax code. Tax codes tell employers and employees how much tax should be taken out of a pay packet before it goes to the employee.

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.

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