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...]
IR35 and the Private Sector changes April 2020
This has and will be a very hot topic over the coming months with the April deadline fast approaching. The new “off-payroll” tax rules are coming in to effect across the private sector as of 6th April 2020. The revamp of the existing IR35 laws, which were introduced in 2000, ensuring that contractors not meeting HMRC’s definition of Self-Employed are not benefiting from tax breaks that are associated with contracting.Since the Public Sector changes back in 2017, the rules require companies … [Read more...]
EU Settlement Scheme – One Million People Granted Status
This week the millionth person was granted status under the EU Settlement Scheme – just five months after the Scheme fully opened.The Home Office is committed to making the process of applying to the EU Settlement Scheme as simple and straightforward as possible and looks for reasons to grant status, not refuse it.This milestone has been announced alongside the latest application statistics for July, published today (15 August). This demonstrates the progress of the Scheme to date and we … [Read more...]
Umbrella companies: what their detractors don’t want you to know
Despite the important role that umbrella companies play in supporting contractors, providing all employment rights and ensuring tax and NICs are paid, there are numerous misunderstandings about how umbrellas work in practice.Five ‘myths,’ if you will, still doing the rounds, writes Julia Kermode, CEO of the Freelancer & Contractor Services Association.Myth 1Hidden charges!When trade unions first became aware of umbrella companies, they were concerned about the apparent … [Read more...]
The EU Settlement Scheme
The EU Settlement Scheme is now officially open. After a successful launch on Saturday, more than 50,000 applications were made over the weekend. This brings the total number of applications to over 280,000.Applying to the EU Settlement Scheme is completely free, and the Home Office’s aim is to make it as simple and straightforward as possible. All you need to do is complete a three-step application with a laptop, tablet or mobile device to prove your identity, confirm you live in the UK and … [Read more...]
Risks Facing The Recruitment Sector in 2019
Whilst the recruitment industry is a good barometer for the economy in general and is affected by Brexit and GPDPR, like all other sectors, recruiters will face some very specific risks in the coming year. IR35 was a major concern throughout 2018 and we now know that the changes will be introduced to the private sector in April 2020. We have already seen recruiters looking at workarounds, as pressure from hirers intensifies throughout 2019.With possible changes to regulations in the payroll … [Read more...]
The IR35 drama continues…….
How Off-Payroll toxifies relationships between business, agencies and the self-employed Not only are the Off-Payroll rules an overly-burdensome and unjust amendment to IR35, they also have a toxic impact on the previously amicable relationship between businesses, agencies and the self-employed. What HMRC introduced in a wanton effort to increase IR35’s tax yield threatens to destroy the supply chain dynamic and considerably damage flexible working in the UK.A real-life realisation … [Read more...]
Preferred Supplier Lists
As we settle into 2019 it is time to reflect and review on how we are doing, to avoid regulatory penalties and improve our business for the coming year.Many recruitment agencies use preferred supplier lists (PSL) for umbrella companies, but how do you ensure this is followed by your workforce? There has been mention of HMRC targeting individual consultants for unpaid tax, due to direct payments made by providers.Referral incentives place consultants at risk and can leave businesses open … [Read more...]
Are you thinking of registering for the CCS Framework?
The Government will be closing its list of preferred recruitment consultants for state schools for two years – so there’s no time to lose, says Sarah Johnston, Managing Director of payroll provider ePayMeIf you provide supply teachers, then you should know all about the extension of the CCS Framework to cover the recruitment of supply teachers – but just in case you don’t, here’s a quick recap.The Crown Commercial Service (CCS) is a UK Government agency which helps public sector bodies … [Read more...]
If it sounds too good to be true, it usually is
Public sector nurses and social workers who have been encouraged by recruitment agencies to take their wages through suspected tax avoidance schemes are now in debt of tens of thousands of pounds following HMRC investigations.Employment agencies have been taking business from rivals by allowing workers to be paid through umbrella companies offering between an 80-90% take home pay.These tax schemes, which are usually registered in places like the Isle of Man or Malta, attract workers due … [Read more...]