umbrella Articles

Most UK firms in four-day work week trial opt to continue

A large trial of the four day working week in UK companies has been hailed a ‘major breakthrough’, with almost all of the participating companies choosing to continue using a shortened working pattern.

Staff participating in the scheme reported a much improved work-life balance and companies reported maintained or improved business productivity in almost every case.

The six-month trial, which involved 61 companies, found that 56 of them will continue with the four-day week, with 18 opting to make it a permanent change.

HMRC’s fresh crackdown on tax avoidance schemes

Her Majesty’s Revenue and Customs (HMRC) has brought fresh impetus to its crackdown on tax avoidance schemes, issuing a £1 million fine for one promoter and ‘naming and shaming’ four additional schemes.

Hyrax Resourcing Ltd received a £1 million fine for promoting a tax avoidance scheme that paid contractors through loans rather than taxable income.

Umbrella Take Home Pay: Why 90% is Impossible
marketing | 29 July 2022
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When it comes to choosing an umbrella company, maximising take home pay is a priority for most contractors.

Unfortunately, schemes that advertise the best rates of take home pay are also the ones that will get you in trouble with HMRC.

Even though most of these firms claim to be ‘100% compliant’, the reality is that an umbrella company that can offer 90% take home pay simply can’t be conforming with tax regulations.

‘Making Tax Digital’ Looms for more Limited Company Contractors
marketing | 17 February 2022
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‘Making Tax Digital’ Looms for more Limited Company Contractors.

The Government’s flagship digital tax policy will be extended to include more contractors and limited company directors from April 2022.

Making Tax Digital (MTD) is HMRC’s strategy to make taxes easier and more efficient. But complying with the rules does come with an additional cost for businesses that need to use Government-approved accounting software.

 

New enforcement body to protect workers

The government has committed to creating a new enforcement body to uphold vulnerable workers’ employment rights as part of the ‘Good Work Plan’.

Several existing organisations will be brought together for the new, single workers rights body. It will also be given new powers to deliver more effective protection for flexible workers, such as those working through umbrella companies.

How flexible working can attract over-50s back to work
marketing | 9 November 2022
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Contracting and other types of flexible working could help bring more over-50s back into the workforce. That’s according to Umbrella.co.uk director Miles Grady.

The Bank of England has expressed concern at the rising number of over-50s not in work or looking for work in recent months.

IPSE names worst offending late payers
marketing | 8 August 2022
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In an effort to improve payment practices for self-employed workers, the Association of Independent Professionals and the Self Employed (IPSE) has named the worst offending late payers in the UK.

Since April 2017, large companies have been required to report their payment practices to the UK government. IPSE has collated information from the latest data release to find the ten companies that take the longest time to pay.

The information covers payments to limited company contractors and other businesses. Payments to umbrella contractors are not included in this information, as these contractors are paid by PAYE.

How much does it cost to run a limited company as a contractor

For many years, running a limited company was almost the default option for contractors.

93% of contractors thought about using an umbrella company last year
marketing | 13 January 2022
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Following the introduction of new IR35 rules in April, more than 90% of contractors thought about ditching their limited companies for umbrellas in 2021.

New rules affecting private sector clients mean that contractors are much more likely to be judged ‘inside IR35’ when starting a new contract.

IR35 for tech contractors: What you need to know

Highly skilled contractors working in software development, IT project management and many other roles in technology are among those most at risk from changes to IR35 rules.

 

Although these roles tend to be well paid, the contracts are often structured in a way that means they fall ‘inside IR35’.

In this brief guide, we aim to answer the most important questions about IR35 to help you better understand the rules, how they might be applied and how you can avoid paying more in tax.

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