Dear NHS workers and contractors, We would first like to start this letter with saying thank you. Thank you for everything you have done, everything you continue to do and everything you will do as you continue to slave under the laborious and hard hours working for our National Health Service. After reading through articles by the BBC, Independent, Daily Mail and so on it is clear that you are seriously having a hard and worrying time working where you do. This past year has thrown … [Read more...]
U-turn on Class 4 NICs
The Chancellor, Richard Hammond, has announced a U-turn on the proposed rise in national Insurance rates for the self-employed. In the Spring Budget it was announced that as of 6th April 2018, Class 4 NICs would be increasing to 10% from the current 9% in place, with a further increase to 11% the following year. In a letter to Tory MPs, the Chancellor revealed that he has “decided not to proceed” with the planned rise in NICs for self-employed workers, despite only announcing the measure … [Read more...]
Agencies slash PSCs’ pay rates, insist on umbrellas
PSCs are being blocked from staying as ‘Ltd’ companies and applying IR35 because agencies and public bodies want to head off hassle next month of assessing status and withholding tax. Ultimatums are therefore being sent to such PSCs before April 6th, in essence saying ‘convert to a PAYE umbrella, ignore the less-taxing model of being a PSC inside IR35, or be out of work.’ “The best option for [you/a PSC], with regard to take-home pay, and us [the agency], from an admin and compliance … [Read more...]
Self-employment models coming under scrutiny again
In 2014, HMRC introduced new rules designed to remove so-called false self-employment for workers engaged via intermediaries. These rules centred on ”SDC” tests designed to establish whether a worker was, or was capable of, working under supervision, direction and control. Unless an engager could evidence that no SDC (or right to) existed, PAYE/NIC would need to be applied to the worker’s earnings as though they were employees Not surprisingly, the number of self-employed contractors working … [Read more...]
Umbrella vs In-house PAYE
Finding it difficult to decide? Are you stuck between using an agency which offers internal PAYE or working for an Umbrella company? There are a few things you’ll need to consider before you make a decision. One of the main benefits of Umbrella over in-house PAYE is that with Umbrella you are fully covered by employment rights throughout. This includes statutory payments, such as; sick pay, maternity/paternity pay and holiday pay (if you do not opt out). Your workers’ rights are not always … [Read more...]
TfL bans PSC contractors ahead of IR35 change
Transport for London has become the first public sector body to react to April’s IR35 reforms by imposing a blanket ban on workers who operate through their own limited company. Under the reforms, such bodies will -- for the first time -- become responsible for the difficult decision of assessing whether their limited company staff (known as ‘PSCs’) are inside IR35. But TfL is heading off both having to use an IR35 digitial tool due to be released by HMRC to help end-users reach such a … [Read more...]
HMRC reveals plans for new public sector IR35 legislation—industry responds
This Monday saw the release of the HMRC’s draft finance bill, detailing the reforms as to how the IR35 legislation must be operated in the public sector from April 2017. There have been strong reactions from industry bodies to the Government’s new ‘Draft provisions for Finance Bill 2017’, nearly 400 pages of new tax legislation setting out the draft provisions for technical consultation, including changes to National Insurance contributions, clampdown on salary sacrifice contracts for new car … [Read more...]
“Self Employed” – Are you sure?
Today’s blog focuses on the events/PR sector. Whilst no different to any other sector, adherence to the numerous, and often complex HMRC guidelines/requirements require focus and close attention. Whilst “cheap” is no doubt good for the bottom line, does this provide longevity in either the solution of the long term for a business? At ePayMe, we work with many within this sector. Similarly, we speak with a plethora of prospective clients and come up against a couple of common themes, but … [Read more...]