In the US, freelancing and temporary work was the norm up until the late 19th century. Most employment outside farming was in manufacturing, and it was mainly temporary. In 1910 half the workers in production jobs were independent contractors.Starting around the 1880s, companies started to bring together large workforces, and created more structured jobs. Wage controls during the world wars resulted in large benefit programs being created. With unions a rising force, laws were created to … [Read more...]
Labour market figures show the UK flexible workforce is only getting stronger….
NS Labour market figures out today show that the UK workforce has increased due to an upsurge in self-employment and temporary workers. 20,000 more people are choosing to work self-employed, plus 28,000 more are working on a temporary basis. The figures are based on a comparison between Q4 2015 and Q1 2016. Commenting on today’s employment figures, Julia Kermode, CEO of FCSA said: “Today’s figures clearly demonstrate just how important the flexible workforce is to UK plc. With the … [Read more...]
Treasury Minister meets FCSA in discussion on the Government’s PSC reforms
FCSA members have held a roundtable with David Gauke MP, Financial Secretary to the Treasury, as part of the trade association’s mission to build relations and continue discussions with the Treasury regarding tax policy for umbrella companies and PSCs. Hosted by The CBI, the focus of the meeting centred on the proposals announced at the 2016 Budget to change the tax framework for PSCs in public sector engagement. Members heard from the Minister that he is keen to work with stakeholders to … [Read more...]
HMRC in ‘cracking win’ over MSC contractors
The first ever court appeal against the MSC legislation has found in favour of the taxman, who is calling the ruling “cracking” for protecting up to £9million.Such is the total sum expected to be safeguarded in respect of all limited companies set up under the scheme before the court, which was run by Costelloe Business Services (CBS).Accused of being a MSC that encouraged the avoidance of £378,000 in tax (including NICs) by encouraging contractors into limited companies, CBS gave just … [Read more...]
Tribunal favours HMRC in five avoidance cases
The Finance and Tax Tribunal has ruled in favour of HM Revenue & Customs in five cases in which an avoidance product operated by managed service company (MSC) Costelloe Business Services was used to avoid PAYE income tax and Class 1 National Insurance contributions (NICs) on employment income.Costelloe Business Services (CBS) case rested on whether the scheme sidestepped MSC legislation with CBS claiming it was not involved with each service company. Recruiter understands the scheme … [Read more...]
The Force is Strong with this one…
This is the Payroll company you are looking for! In celebration of Star Wars Day, ePayMe have a limited time special offer: Any candidate that registers or re-registers with us between May the 4th andMay the 6th will receive 4 weeks free payroll processing.To take advantage of this amazing offer, simply ask your candidates to call us between the above dates on 0800 622 6119, or register online at www.epayme.co.uk/contractor-registration (remembering to quote the promotional phrase, 'The … [Read more...]
PSC – A Ltd. Shelf Life
No need to set an alarm this morning – this news certainly woke me up……………………..SDC and PSC are words synonymous within the contractor, temp and the wider Recruitment Process Outsourcing (RPO) sector.But, HMRC, via Companies House have today published a game changer and it’s huge!In short, Companies House are viewing, SDC and PSC as one and the same. This will be known as “People with Significant Control” (PSC).The upshot is simple, the exodus to people setting up Ltd Companies, … [Read more...]
Most limited company contractors to end up within IR35 rules
Barring exceptional cases, contractors working for the public sector through their own limited companies are now likely to be subject to a long-standing but controversial tax regime aimed at tackling tax avoidance, say employment tax experts.This is due to proposed changes around the tax regime known as IR35. The proposed new rules, announced last month in Budget 2016, are designed to crack down on the use of limited companies, also known as personal service companies (PSCs). Contractors … [Read more...]
It’s like going back 60 years!
From the 6th of April 2016, in order to pay a contractor travel and subsistence expenses free of Tax and National Insurance, staffing businesses and employment intermediaries have to show that there is no supervision, direction or control (SDC) over a worker “in the manner in which they go about their work”. HM Revenue and Customs (HMRC) will test by examining relevant documents and gathering facts from all parties involved, and if HMRC considers the evidence is unsatisfactory they will recover … [Read more...]
Disguised Remuneration Avoidance
In the 2016 Budget, the Government made an important policy announcement about Disguised Remuneration Avoidance. HMRC will be using the ‘contractor loans’ Talking Points session on 30th March to summarise what this announcement means for individuals that might be involved in Disguised Remuneration Avoidance schemes such as contract workers. ePayMe have been invited to partake in this session and we will be reporting back as to the specific changes. Should you have any questions, please email … [Read more...]