HMRC have released figures that reveal self-employed pension savings have hit record lows across 2019/2020. Since 2012 to 2013, non-eligible employee participation has increased to 34%. However, this has declined for the self-employed to 16%.In 2019/20 self-employed people paid around £830m into their personal pensions. Though, this figure is down from the £1.15bn paid in the previous year.It is thought that due to the COVID-19 pandemic, this figure would have reduced even further … [Read more...]
Could IR35 be responsible for the UK’s HGV driver shortage?
Food shortages, petrol crisis, the last few months in the UK have been challenging for a number of Brits. A lot of the recent issues are down to a shortage of HGV drivers. It’s estimated that Britain needs an additional 100,000 drivers to ease pressures.The COVID-19 pandemic and Brexit are being blamed for the shortage of drivers. However, new research from the Road Haulage Association (RHA) reveals that recent tax changes could partly be to blame.For those that aren’t familiar with it, … [Read more...]
Could the National Living Wage be going up?
It’s the Conservative Party Conference this week, and Boris Johnson has raised speculation that the National Living Wage could be set for an increase.It seems his goal is to move the country “towards a high wage, high skill, high productivity economy”. They could potentially be just a few weeks away from signing-off on this rise.Under the new measures, earners over the age of 23 could receive around £9.42 an hour. This would come into effect from the start of the new tax year, April … [Read more...]
Know your supply chain post IR35 reform
With a rise in exploitation and non-compliance in the recruitment industry, it has never been more important for all links of the supply chain to work together and ensure a good working practice.Since the IR35 reform, a number of contractors are now turning to umbrella companies for their payroll needs. Unfortunately, there has seen a rise in disguised remuneration schemes and bad practices amongst some businesses. A number of firms are actually tax-avoiding and deceiving contractors into … [Read more...]
Government confirm £20 Universal Credit uplift will end
Despite some MPs appealing to the Government to make the £20 universal credit uplift permanent, they have announced that this will indeed be stopped.The scheme will now officially end on 6th October, however, the exact date money will stop being paid will be dependent on when someone receives their universal credit allowance.For some, this will mean the last payment they receive at the higher rate will be the end of September, only a matter of days. With this news and the announcement of … [Read more...]
PM announces rise in National Insurance tax
Boris Johnson has announced a UK-wide “health and social care levy” to support reforms of the care sector and NHS funding in England. The new scheme will start as a 1.25% rise in National Insurance from April 2022. However, then become a separate tax on earned income from April 2023.The plan was today signed off by ministers at a cabinet meeting, despite earlier disputes from Tory MPs.The PM has said the aim is to raise a total of £36 billion over the next few years for frontline … [Read more...]
Calls for Universal Credit uplift to be made permanent
Ministers from Wales, Scotland and Northern Ireland have called the UK Government to make the Universal Credit uplift a permanent change.As a response to the COVID-19 pandemic, the government introduced a £20 per week uplift to support low income families. However, this scheme is now set to be scrapped as of October. There are growing concerns about the impact this will have on poverty and the hardship families will face.Research by the Joseph Rowntree Foundation (a charity which … [Read more...]
HMRC issues letters alerting contractors to tax avoidance schemes
The new IR35 Legislation has encouraged more contractors to seek work through umbrella companies. However, the rise of disguised remuneration schemes has now prompted HMRC to act.HMRC have started issuing Tax Avoidance Warning letters directly to contractors, strongly suggesting they may be involved in a DR arrangement or scheme. However, the contractors were likely deceived into signing up as a user, believing they were signing up to a true umbrella company.Are the Revenue using this as … [Read more...]
All you need to know about supply chain compliance
5 months into the IR35 Off-Payroll Legislation, and companies are still facing the effects of these changes. It is now more important than ever to have a good understanding of who you’re working with.Due to the changes, the responsibility of assessing a contractors IR35 status is now down to the end hirer. Making an accurate assessment as part of the compliance process will help avoid any liabilities that could arise from not carrying out this check.The new legislation has meant that … [Read more...]
Starting supply from September? What you need to know
Starting a supply role can be quite daunting and complex when considering your options for having your salary processed.To take the weight off your shoulders, we have put together our top tips for finding a compliant and trustworthy payroll solution.Do not believe everything you read – some articles that have been published online regarding holiday pay and the deductions that payroll providers deduct, are not factually correct. A compliant payroll provider will have staff who specialise … [Read more...]