umbrella companies Articles

The LibDems have launched their election manifesto which highlights their proposed tax changes and spending plans should they gain power in the General Election.

Labour have launched their election manifesto which highlights their proposed tax changes and spending plans should they gain power in the General Election.

A search of the document did not highlight any specific changes relating to umbrella companies, contractors or IR35 but there is a promise to support small businesses which could be of benefit to contractors and freelancers who operate though their own limited companies:

In a speech designed to show how well the economy was recovering and how it was prosperity all around it may have been hard to notice that George Osborne had one eye on the huge number of contractors and freelancers that support the economy and its recovery.

Today, 18th March 2015, is the final budget before the General Election. At Umbrella.co.uk we will be reporting all the changes that will affect contractors, freelancers and umbrella companies.

Because this is the last budget pre-election many hope that it will be an opportunity for good news as the Tories will be keen to gain support.

Today, 10th March 2015, representatives of the Umbrella Company industry and of Employment Intermediaries will be meeting a number of MP’s at the House of Commons to discuss the HMRC review of Tax Relief on Expenses.

All Umbrella Companies are Equal (AUCAE) have launched a survey so that contractors can have their say on any concerns they may have about the Government’s proposed changes to tax relief on travel and subsistence that were announced in Budget 2015.

The Government has announced it may restrict tax relief on travel and expenses for some contractors where they cannot demonstrate they have control, supervision or direction of their own work. 

marketing | 26 March 2015
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The recent Budget proposal to open a discussion on Umbrella Company expenses means that any changes or discussion are largely on hold until after the General Election with the aim of a discussion document being issued in the summer.

The Government has published the full budget 2015. A search for contractors, freelancers and umbrella companies highlights the following:

Umbrella companies and employment intermediaries

1.250 Autumn Statement 2014 announced that the government would review the growing use of overarching contracts of employment that allow some temporary workers and their employers to benefit from tax relief for home-to-work travel expenses, relief not generally available to other workers. This is unfair. As a result of the review, the government will change the rules to restrict travel and subsistence relief for workers engaged through an employment intermediary, such as an umbrella company or a personal service company, and under the supervision, direction and control of the end-user. This will take effect from April 2016 following a consultation on the detail of the changes. It will level the playing field between employment businesses that seek to lower their costs by using these arrangements and those that do not.

Umbrella Companies featured in Treasury Questions this week with 2 questions from Labour MP’s.

The questions appear to show a misunderstanding about how compliant umbrella companies operate.

A group representing umbrella companies and employment intermediaries held a lobbying event on 11th March at the Houses of Parliament which has hopefully gone some way to clarifying these inaccuracies for those MP’s that attended.

Why Introduced:

So HMRC can tackle Employment Intermediaries that use false self-employment and offshore locations to reduce taxes and avoid employment rights.

HMRC want to know amounts paid to workers supplied by the Employment Intermediary where PAYE has not been deducted.

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