With recent headlines, there is a need for Preferred Supplier Lists (PSL's) but at what cost?A contractor could demand that they continue to be paid through an umbrella that is not on an agencies PSL and that umbrella might not be compliant. The contractor may want to continue to use them as their take home pay is 85%+. In this instance, why should an agency want to use them?There is also additional administration in setting them up, if they have not worked with them previously. Due … [Read more...]
HMRC names avoidance scheme promoters for first time
All legitimate umbrella companies have been calling for the regulation of the sector for a long time.We are pleased to announce that Tax avoidance schemes have been named for the first time by HM Revenue and Customs (HMRC) as users are warned they could face large tax bills.HMRC has today advised anyone involved in Absolute Outsourcing’s or Purple Pay Limited’s Equity Participation Scheme to withdraw from them as soon as possible to prevent building up a large tax bill.This is the … [Read more...]
Changes to National Insurance
The big story in this Spring Statement was the announcement that the Government will increase both the Primary Threshold and Lower Profits Limit of National Insurance to bring them in line with the income tax personal allowance of £12,570.The Primary Threshold and Lower Profits Limit are the points at which both employees and the self-employed start paying National Insurance.Speculation had mounted in recent weeks that the Chancellor would cancel the proposed increase in National … [Read more...]
Will the proposed increase to National Insurance, to cover the social care levy, have a drastic impact on the economy?
The plan is to increase National Insurance by 1.25% for employers and the same percentage for employees totaling an increase of 2.5%.With the cost of living rising since early 2021, December reached the highest recorded level in decades this is not a welcomed increase.Yesterday, The House of Commons called for the Government to replace the proposed National Insurance increase with taxes on the wealth of the richest. This motion has been signed by 21 members and no amendments have been … [Read more...]
ePayMe Renews APSCo Membership
ePayMe, the leading outsourced payroll services provider for the recruitment industry, has renewed its affiliate member of APSCo, the international trade association for the recruitment industry.The APSCo affiliate membership, this means that ePayMe has been recognised for meeting the standards required by Government departments of any company involved in supplying employees or contractors. Alongside the ‘stamp of approval’ from APSCo, ePayMe also holds Professional Passport … [Read more...]
Crown Commercial Services for Supply Teachers Framework announcement
The following is a copy of an email sent to Recruitment Agencies that are working within the Supply Teacher Framework explaining that they are to confirm that they are not using Joint Employment models to pay their Supply Teachers.Yet more proof that the government and governing bodies are clamping down on services that they deem unsuitable for workers to be paid under.“We have recently been made aware of an emerging ‘joint employment model’ whereby the employment business and an … [Read more...]
HMRC issue guidance on how to reduce your risk of using tax avoidance umbrella companies
Here at ePayMe, we have written a number of blogs on compliant umbrella firms, knowing your supply chain and tax avoidance schemes. Now, HMRC has published their own guidance on how to reduce this risk.As we’ve highlighted previously, off-payroll changes are bringing more workers under PAYE. However, some companies are finding unconventional and non-compliant ways to avoid this and pay less tax.These tax avoidance schemes operate on disguised remuneration, reporting some earning as … [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...]
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...]