The HMRC in a briefing issued last month announced how it will support IR35 affected organisations and intervene if 'deliberate defaulters' don’t comply. With the deadline April, 6th 2021 fast approaching the HMRC have issued a briefing, available on GOV.UK on how it will support affected organisations with IR35 reform changes. The HMRC also stated how they will intervene if IR35 non-compliers deliberately do not adhere to changes. Are you prepared? IR35 changes apply tomedium … [Read more...]
What the disguised remuneration operators wont tell you
Many contractors we have spoken to over the years have not realised just how much information HMRC holds that would make it easy for them to identify ‘dodgy’ schemes operating in the market. The issue that comes up again and again is why HMRC is not more proactive in its approach and working to close such schemes down faster. Whilst we too take steps to continuously challenge HMRC, there has been little headway. Despite this, contractors need to be alert to the fact that nowadays it is more … [Read more...]
Furlough – the good, the bad and the misleading
With many temporary and agency staff not being able to continue to work as usual during the Covid-19 pandemic, we have seen a significant number of changes within the sector from recruitment agencies not wanting to operate internal PAYE and choosing to outsource entire books of workers, to contractors choosing alternative career paths to remain in employment. It’s fair to say the pandemic has caused some questions around how payroll providers can continue to support those affected by these … [Read more...]
Education agencies, why are you not outsourcing your payroll?
Why use an Umbrella company or as we like to call ourselves, an Outsourced payroll Provider, compared to PAYE through your agency?We have seen a large increase in education agencies utilising umbrella services since the pandemic and below our National Account Director Paul Johnston explains why:Since the demise of expenses back in 2016, the thought of utilising a payroll provider for Umbrella services has seen a change in mind-set and not all for the right reasons. Many workers feel that … [Read more...]
Immigration law changes, is your business ready?
Following the departure of Great Britain from the EU, the transition period ends in December. From January 2021, new rules will apply.One topic businesses need to ensure they have covered is the immigration law changes, which will affect business that employ workers from the EU.As many businesses will already be aware, EU nationals will have to apply for the EU settlement scheme to continue to live and work in the UK and have until the 30th June 2021 to apply for the scheme.On the … [Read more...]
Temporary staff numbers increase following lockdown
Availability of candidates saw a rise for the time in 20 years, reflecting redundancies announced by many companies across Britain following lockdown. It is estimated there has been over 700,000 job losses so far due to the pandemic, with numbers expected to reach over 1 million by the end of 2020.Billing from temporary hiring’s rose for the first time in 7 months. There was also a rise in billings from companies hiring permanent workers in August but the increase was worryingly small, the … [Read more...]
Scam Advice
A number of people across the UK have fallen victim of HMRC scams such as bogus phone calls, WhatsApp messages, Tax refunds and most recently coronavirus scams.If someone texts, calls or emails claiming to be from HMRC and asks for credit card or bank details it is likely to be a scam. The scams mimic HMRC messages in an effort to look genuine.The most recent scam is via text for a ‘goodwill payment‘ telling customers they can claim a goodwill payment due to the coronavirus. One example … [Read more...]
Is PAYE the way forward post Covid-19?
With over 8 million employees in the UK receiving furlough through the CJRS recruitment agencies are seeking alternative options to umbrella but is PAYE the way forward?PAYE V’s UmbrellaMany contractors and agencies get confused by umbrella, umbrella is a form of PAYE where the payroll provider deducts the standard PAYE deductions from the contractors earnings and submits these to the government. The agency provides the contractor with an ‘agency rate’ which is an uplifted rate of pay to … [Read more...]
Why recruitment agencies are outsourcing their payroll?
It has never been a better time to be a freelance contract worker within the UK, growing numbers of agencies are becoming more and more reactive to the countries growing demand for a more flexible workforce.We have seen over a 40% growth in our business each year for the past 2 years, which is a clear sign of a change in which hirers are addressing their recruitment needs. With growth, comes further burdens to continue to grow unless processes are in place to support these … [Read more...]
Tax avoidance schemes aimed at contractors and agency workers
HMRC is aware of schemes that claim to increase your take-home pay by paying less Income Tax and National Insurance contributions. These schemes do not work and by using them you may be taking part in tax avoidance. How these schemes work Most umbrella arrangements operate within the tax rules, and correctly deduct tax and National Insurance contributions from all your earnings using PAYE.Some promoters of tax avoidance schemes set up umbrella companies and use them to convert income into … [Read more...]