Umbrella Company Articles

Five things you need to know before you become an umbrella worker
marketing | 9 August 2021
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Recent changes to IR35 (off-payroll working) legislation mean that many contractors are looking to set up with umbrella companies in the UK.

Although working through an umbrella company is much easier than running your own limited company, it can be confusing if you haven’t done it before. That’s why we’ve prepared this introductory guide with some of the most important things you need to know before you join an umbrella.

Calls to regulate ‘cartel’ umbrella companies
marketing | 28 May 2021
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Industry experts have called on the government to regulate the ‘cartel-like’ umbrella market.

Former senior policy advisor to the Treasury, Rebecca Seeley Harris, and offpayroll.org founder James Poyser argue that urgent action is needed to stop scandalous companies ripping off workers and bringing the sector into disrepute. 

How to choose a compliant umbrella company
marketing | 26 March 2021
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Stricter IR35 rules mean that many limited company contractors are looking to switch to an umbrella working model.

Joining an umbrella company means that you pay tax at the same level as an ‘inside IR35’ limited company contractor, while also benefiting from holiday and sick pay entitlement.

When you choose an umbrella company, it’s imperative that you choose a compliant provider. Not doing your research at an early stage could cost you in the long run.

Umbrella compliance has hit headlines recently after HMRC warned contractors about a number of schemes offering higher than average rates of take home pay.

IR35 Contractors: Watch Out For Unlawful Umbrellas

New IR35 rules due to take effect in the private sector from April 2021 could force thousands of limited company contractors to shutter their limited company and start using an umbrella company for the first time.

Joining an umbrella company is a tax efficient way to ensure IR35 compliance while also enjoying some for the benefits that come along with being an employee, such as holiday and sick pay.

Unfortunately some non-PAYE payment vehicles also describe themselves as ‘umbrellas’ and these schemes are often illegitimate.

Contractor guide: Moving from a limited company to umbrella model in 2021
marketing | 11 January 2021
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Many contractors are likely to close their limited companies this year and subscribe to an umbrella company to try and avoid punitive new IR35 rules.

For the most part, limited company contractors love the tax advantages and the autonomy that comes with running their own personal service company (PSC). But a major shift in the way that IR35 legislation is applied in the private sector could lock thousands of contractors into high-tax, low-benefit arrangements.

If you tend to work very closely with your private sector clients and are at risk of being trapped in an ‘inside IR35’ contract, then switching to an umbrella company model of working could be the best move you make in 2021.

One-in-three contractors working outside IR35 rules
marketing | 9 June 2021
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Following the introduction of new off-payroll working (IR35) rules in April, research suggests that around one-third of limited company contractors are currently working on ‘outside IR35’ contracts.

Separate studies from Qdos and inniAccountants concluded that around one-in-three (33% and 36% respectively) contractors have been able to retain or secure a new commercial contract.

According to the inniAccounts survey, which took place in March and April, 35% of contractors said that that they were either classed as ‘inside IR35’ or blocked from working through a personal service company (PSC).

Limited Company Contracting in 2021/22? Time for a Rethink

Are you a contractor? Are you planning to work through your own limited company in the new tax year? New IR35 rules could mean that it’s time to rethink the ltd way of working.

Changes to off-payroll working (IR35) rules mean that contractors are more likely to be caught out. From the start of the 2021/22 tax year, private sector clients will be responsible for judging a contractor’s IR35 status for the first time.

Umbrella.co.uk has become an APSCo Trusted Partner

Nick Holmes, CEO at Umbrella.co.uk, said: “We are proud and excited to announce our membership status move to Trusted Partner is now complete.”

 

APSCo (Association of Professional Staffing Companies) is the regulatory body for recruitment businesses and as a Trusted Partner, Umbrella.co.uk is monitored and regulated by APSCo’s guidance. All members commit to a strict Code of Conduct and pass an external quality check with clients and candidates.

Challenges and opportunities for umbrella workers in 2021

Last year was a challenging year for almost everyone in the UK, including umbrella workers. Many of these challenges are likely to continue this year, but there will also be opportunities for umbrella workers to prosper in 2021.

In this article, we look at some of the most important challenges and opportunities facing umbrella workers this year.

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.

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