HMRC have launched a consultation concerning ways to tackle abuse of the construction industry scheme.The consultation seeks views on changes to the rules to prevent tax loss from the CIS. HMRC will have the power to correct the CIS deduction amounts claimed by sub-contractors on their Real Time Information (RTI) Employer Payment Summary (EPS) returns and seeks views on the implementation process.The 10 week consultation started on the 19th March and will conclude on the 28th May … [Read more...]
Are British workers thriving, striving, or just about surviving?
The Royal Society of Arts (RSA) has published the results of a study it has carried out into self-employment. Entitled "7 portraits of modern work in the UK", it takes a close look at different segments of self-employment and pulls together the main concerns expressed by the workers surveyed. Below is the RSA's blog about the report, followed by a link to the report itself.We set out to find out how workers are faring both in terms of their experiences of economic security and the quality of … [Read more...]
Moving back to a trusted umbrella service from an expensive PSC provider!
Following changes for off payroll working in the Public Sector, many contractors may have found themselves assessed as working inside IR35. Many end clients do not want the hassle of deciding each individual case and so have placed a blanket ban on all contractors. Many of these contractors cease operating through their own limited company, and opt instead for umbrella employment as their agency and end client have suggested. For a contractor working inside IR35 this is usually the better … [Read more...]
Self-employment driven by higher earners, says report
The rapid growth of self-employment in the UK has been driven more by people in higher-paid than low-paid work, according to a new report. The analysis comes from the Resolution Foundation, an economic think-tank.It says the "privileged" self-employed, with good educational qualifications and higher earnings, made up 57% of the growth in self-employment after 2009.Among them were people working in law, accountancy, health services and management consultancy.The think tank says they … [Read more...]
Booming gig economy is bad for UK public finances, says TUC
Low-paid self-employment and zero-hours contracts are costing more than £75m a week in lost taxes and national insurance contributions, new research indicates.The rapid rise in insecure work in the UK is costing the government almost £4bn a year in lost tax income and benefit payouts, according to new research into the gig economy by the Trades Union Congress.The UK’s growing legions of low-paid, self-employed workers and those on zero-hours contracts earn significantly less than regular … [Read more...]
NHS IT agency foresees PSCs moving to brollies
Contractors who supply the NHS through limited companies will likely move to umbrella companies before April’s IR35 reform comes into force, a health service IT recruiter predicts.Contractors’ next best alternative is to leave the public sector or the NHS for the private sector instead, says Don Tomlinson, managing director of NHS IT staffing firm max20.Tomlinson sounded aware that contractors who don’t act before April will have a third option -- stay as a limited company and accept the … [Read more...]
Do you operate within the Public Sector?
Last 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...]
Don’t be left in the dark about your Self-Employed Status
For many years being Self Employed meant working for yourself with no input from anyone else. Gone are the days of “cash-in-hand” as HMRC are clamping down on the whereabouts of Tax and NI for these services. If you are actively sourcing your own work for yourself and have no input from another source then you can be classed as self-employed, if however, you rely on an agency to source you this work then you are classed as employed and so will need to be PAYE or Limited status.PAYE can be … [Read more...]
Jobs of the future may not have stable hours, holiday pay, sick pay, or pensions, DWP secretary says
Damian Green describes development in the labour market as 'exciting'.Jobs of the future may not have stable hours, holiday pay, sick pay, or pensions, the Work and Pensions Secretary has said.Damian Green described the trend in employment practices towards the so-called “gig economy” as “exciting” and said the changes had “huge potential”.The Cabinet minister’s endorsement of the approach comes a month after an employment tribunal found that drivers for the Uber car service should … [Read more...]
Know your status, Know your rights
It’s been a particularly crazy couple of weeks; Uber, Delivery firm Hermes, Deliveroo and Amazon. Whilst this ever growing list will no doubt expand further, partnering with a reputable and credible payroll provider will help mitigate this risk.Highlighted below is an overview of recent cases;The Uber tribunal concluded that Uber drivers should be classified as “workers” rather than self-employed, meaning they will be entitled to certain statutory rights such as minimum wage. Commenting … [Read more...]