Chancellor Rishi Sunak set out plans for 80% wage subsidies for staff kept on by employers last week and the PM said he wants similar protection for freelancers. However, he stated there was “particular difficulties" for freelancers who are not on Pay As You Earn (PAYE) schemes, but that he wanted to achieve "parity of support" across the workforce.With 5.2 million self-employed workers in the UK, it was only a matter of time before the chancellor put a plan in place to support the self – … [Read more...]
Tax helpline to support businesses affected by coronavirus (COVID-19)
HMRC has a set up a phone helpline to support businesses and self-employed people concerned about not being able to pay their tax due to coronavirus (COVID-19).The helpline allows any business or self-employed individual who is concerned about paying their tax due to coronavirus to get practical help and advice. Up to 2,000 experienced call handlers are available to support businesses and individuals when needed.For those who are unable to pay due to coronavirus, HMRC will discuss your … [Read more...]
HMRC Tackling Construction Industry Scheme Abuse
HMRC have launched a consultation concerning ways to tackle abuse of the construction industry scheme.The consultation seeks views on changes to the rules to prevent tax loss from the CIS. HMRC will have the power to correct the CIS deduction amounts claimed by sub-contractors on their Real Time Information (RTI) Employer Payment Summary (EPS) returns and seeks views on the implementation process.The 10 week consultation started on the 19th March and will conclude on the 28th May … [Read more...]
Budget 2020
With Coronavirus (COVID-19) taking up almost all media activity recently, it would have been very easy to have missed the Chancellors first Budget to parliament yesterday.In his first Budget, Chancellor Rishi Sunak unveiled a £12bn package to help the country through the coronavirus outbreak.£5bn emergency response fund to support the NHS and other public services in England All those advised to self-isolate will be entitled to statutory sick pay, even if they have not presented … [Read more...]
Why recruitment agencies are outsourcing their payroll?
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...]
What do you look for when you review your PSL?
Many agencies follow compliance processes they have internally to review the PSL of umbrella companies. However, do you really know what your workers are being charged and understand the payslip and calculations behind the figures?With the key information document, being issued to contractors from April 2020 by recruitment agencies now would be the time to check what is actually being deducted.We review payslips from competitors on a regular basis from contractors who are not happy with … [Read more...]
How do you choose the right Umbrella company?
With the changes in IR35 reform just around the corner, more and more Limited Company PSC’s that are deemed as “inside” IR35 will be required to alter their current pay structure and look at either an employed in-house PAYE or outsourced umbrella service. Many agencies run a PSL (Preferred Supplier List) to allow workers a choice of approved/accredited providers without having to search themselves and stumble on a provider that is not necessarily compliant. It is just another level of compliancy … [Read more...]
Are you calculating holiday pay at 12.07%? If so, you need to read this!
The position regarding holiday entitlement for workers with varying work patterns (particularly those who don’t work every week) was considered by the Court of Appeal in the recent case of Harpur Trust v BrazelMs Brazel is a clarinet and saxophone teacher, she worked at schools providing individual lessons to pupils. Her average working week was between 10 – 15 hours and paid by the hour and did not work during the school holidays. She was required to take her holiday entitlement during the … [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...]
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...]