In 2018, the government committed to regulating umbrella companies following the Good Work Plan. In 2021 HM Treasury, HMRC and the Department for Business & Trade called for evidence on the policy options to regulate and tackle non-compliance in both tax and employment rights by umbrella companies.Umbrella companies play a big role in the temporary/contract supply chain providing their workers with employment rights and deducting the appropriate tax and national insurance contributions. … [Read more...]
Not everyone knows about this…….
Have you heard of the Bereavement Support Payment?Not very many people have but the BSP is a payment that you may be able to claim if your husband, wife, or civil partner died after 6 April 2017. Because this benefit isn't means-tested, you can make a claim regardless of your income or whether you're in work.The BSP has replaced Bereavement Allowance (which was previously known as 'Widow's Pension'), Widowed Parent’s Allowance and Bereavement Payment.What is the eligibility … [Read more...]
Have you heard of JobsAware?
We announced a couple of weeks ago that we had partnered with JobsAware.JobsAware are working with the umbrella sector to help educate and protect contractors and umbrella workers by driving out non-compliance.Most umbrella companies are compliant and offer a good service but with Contractors wanting to take home more of their gross pay, many are looking to schemes that provide this. These non-compliant schemes can look great on the surface for the Contractor but with all these things, … [Read more...]
Government Consults On Holiday Pay Entitlement For Irregular Hour Workers
With last years Harper V Brazel case hitting the headlines, the Government is now consulting on holiday pay entitlement for irregular hour workers.It wants to hear from agency staff, contractors and umbrella companies on how the entitlement is totted up, along with making some proposals of their own.Because of the result of the Harper V Brazel judgement, part-year workers are now entitled to a larger holiday entitlement than part-time workers, who work the same total number of hours … [Read more...]
HMRC Are Asking New IR35 Questions
The Taxman is asking new IR35 questions of clients whose contractors disputed their status and is quietly making changes to how he assesses end-client processes for handling contractor disputes over IR35 status, Treasury minutes reveal.The changes involve HMRC asking the client “specific questions” about their dispute-process and obtaining feedback on the volume of disputes; their outcomes, and if SDSs were altered.'Demands and questions from HMRC' “A list of all contractors – along … [Read more...]
Working through an Umbrella Company, Key Information Documents and Your Employment Rights
An Umbrella Company like ePayMe, is a business that is used predominantly by Recruitment Agencies to pay temporary workers. Your umbrella company is your legal employer and will pay you PAYE. However, the work you carry out will be sourced by the Recruitment Agency on a short term and on an assignment by assignment basis.Before the Recruitment Agency can offer you an assignment, they may ask you to be employed by one of their preferred Umbrella Companies. Many Umbrella Companies are … [Read more...]
National Insurance Increase Reversal; What this means for your payroll
As the Government is committed to a low-tax, high growth economy to ensure people retain more of the money they earn and for businesses to be able to invest, grow and be productive an announcement was made, that the National Insurance Contributions increase will be reversed along with the provisionally planned Health and Social Care Levy.National Insurance rates from 6th November 2022 will be reduced, removing the 1.25% increase for the remainder of the tax year. The Health and Social … [Read more...]
HMRC ‘will resist any reversal of end-clients making decisions on IR35’
The taxman will oppose any deviation from the central tenet of IR35 reform – that engagers decide the status of their limited company contractors.Issuing this assessment, HMRC dispute firm WTT Consulting could have been trying to clue-up or warn those hoping chancellor Jeremy Hunt uses his Autmn Statement 2022 on November 17th to announce an off-payroll review.Dolan Accountancy But the firm’s Graham Webber, who specified the resistance by HMRC to removing clients as the IR35 … [Read more...]
HMRC’s Latest List of Tax Avoidance Schemes
Here is HMRC's latest list of tax avoidance schemes. Its not long since HMRC's last update so they are clearly very active in highlighting these schemes and outing the perpetrators. That's good to see, particularly if it helps stop non-compliant umbrellas and stops contractors becoming embroiled in a scheme that results in a huge future tax bill that they're personally liable for.We would like all umbrella companies to be compliant in their approach to avoidance of Tax and not look to … [Read more...]
Agency workers to replace staff on strike following MP’s vote
Yesterday evening the draft Conduct of employment agencies and employment businesses (amendment) regulations 2022 was approved by MP’s by 289 votes to 202.If approved by the House of Lords, the legislation will be changed to allow employers in public services such as education, transport and healthcare to replace staff on strike with agency workers.These changes come hours after further strike action was confirmed.In light of this, the Government have reviewed the current industrial … [Read more...]