On 7th December HMRC has updated Disguised remuneration settlement terms 2020 for tax agents or advisers.If you’re in a disguised remuneration scheme, there’s guidance on settling your own tax affairs.The guide can be used to help anyone in these schemes understand how their disguised remuneration liabilities will be calculated under the 2020 settlement terms. They take into account changes to the loan charge following the independent loan charge review, but should be used for … [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...]
National Insurance rise to be reversed in November
A 1.25% rise in National Insurance will be reversed from 6 November and the government will axe a planned tax rise to fund health and social care.The NI rise was introduced in April under former chancellor Rishi Sunak, but during the Tory leadership race Liz Truss pledged to change it.New chancellor Kwasi Kwarteng made the announcement ahead of a "mini-budget" on Friday.He said: "Taxing our way to prosperity has never worked."To raise living standards for all, we need to be … [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...]
12.07% holiday pay appeal rejected
Further to our previous blog regarding holiday pay which details information regarding the Harpur Trust v’s Brazel case, it has been published today that the Harpur Trust’s appeal has been dismissed unanimously and the ruling still stands.It was acknowledged that EU case law indicates that, in general, a worker’s minimum holiday allowance is determined by the number of weeks they actually work. Under UK law, holiday pay for people working irregular hours is determined by averaging their pay … [Read more...]
Hot Topic – Preferred Supplier Lists
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...]