It has never been a better time to be a freelance contract worker within the UK, growing numbers of agencies are becoming more and more reactive to the countries growing demand for a more flexible workforce. We have seen over a 40% growth in our business each year for the past 2 years, which is a clear sign of a change in which hirers are addressing their recruitment needs. With growth, comes further burdens to continue to grow unless processes are in place to support these … [Read more...]
HMRC announces change to the off-payroll working rules
Changes to the operation of the off-payroll working rules will only apply to payments made for services provided on or after 6 April 2020, HMRC has announced today ahead of the publication of the government’s review.The formal publication of a review into the implementation of changes to the off-payroll working rules is due to conclude in February.A common issue raised over the course of the review has been businesses’ concerns over what payments the rules apply to and from when. The … [Read more...]
Off- Payroll Reforms 2020
Major reforms to off-payroll (IR35) rules within the Private Sector are scheduled to take effect from April 2020.This will mean that the responsibility will be switched from many contractors to the end client. Their IR35 status of being inside or outside will have significant affects.The rules are not exactly straight forward but it is important to understand what they will mean to your agency as well as your end clients and contractors, so that you can make an informed decision about … [Read more...]
IR35 Guidance – April 2020 changes to off-payroll working for clients
Overview Off-payroll working rules change on 6 April 2020 and are applied differently. From this date, all public authorities and medium and large sized clients will be responsible for deciding the employment status of workers. Who the rules apply to Some rules already apply to all public sector clients, but from 6 April 2020 medium and large-sized private sector clients also need to apply them. The private sector includes third sector organisations, such as some charities.The rules apply … [Read more...]
IR35 Guidance – Understanding off-payroll working
The off-payroll working rules The off-payroll working rules can apply if a worker provides their services through an intermediary.An intermediary will usually be the worker’s own personal service company. They could also be a partnership, a managed service company, or an individual.The rules make sure that workers, who would have been an employee if they were providing their services directly to the client, pay broadly the same tax and National Insurance contributions as … [Read more...]
IR35 is coming regardless of Brexit or a General Election
Just because government are unable to sort out Brexit, this does not mean that IR35 scheduled in for April 2020 is going to be delayed. Regardless of Brexit, a General Election and possible leader change, IR35 will still be in place and actioned. There has been much mentioned recently that with a General Election and possible change in government IR35 will be shelved. This is not going to happen, according to a representative from Saffrey Champness, one of the UK's Top 20 accountancy … [Read more...]
IR35 and the Private Sector changes April 2020
This has and will be a very hot topic over the coming months with the April deadline fast approaching. The new “off-payroll” tax rules are coming in to effect across the private sector as of 6th April 2020. The revamp of the existing IR35 laws, which were introduced in 2000, ensuring that contractors not meeting HMRC’s definition of Self-Employed are not benefiting from tax breaks that are associated with contracting.Since the Public Sector changes back in 2017, the rules require companies … [Read more...]
Off-Payroll working in the Private sector – Draft Legislation
As I am sure you are all fully aware the draft legislation for Off-Payroll Working in the Private Sector has been released. This is very much in line with what we were expecting and have been advising on.Whilst it is open for comments before being added to The Finance Bill 2019, we do not anticipate any significant changes.There are some key points of note in this updated legislation when compared to the Public Sector version:It is happening in April 2020. Clients have an … [Read more...]
EU Settlement Scheme – One Million People Granted Status
This week the millionth person was granted status under the EU Settlement Scheme – just five months after the Scheme fully opened.The Home Office is committed to making the process of applying to the EU Settlement Scheme as simple and straightforward as possible and looks for reasons to grant status, not refuse it.This milestone has been announced alongside the latest application statistics for July, published today (15 August). This demonstrates the progress of the Scheme to date and we … [Read more...]
Umbrella companies: what their detractors don’t want you to know
Despite the important role that umbrella companies play in supporting contractors, providing all employment rights and ensuring tax and NICs are paid, there are numerous misunderstandings about how umbrellas work in practice.Five ‘myths,’ if you will, still doing the rounds, writes Julia Kermode, CEO of the Freelancer & Contractor Services Association.Myth 1Hidden charges!When trade unions first became aware of umbrella companies, they were concerned about the apparent … [Read more...]