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...]
Self-employed pension savings at a low
HMRC have released figures that reveal self-employed pension savings have hit record lows across 2019/2020. Since 2012 to 2013, non-eligible employee participation has increased to 34%. However, this has declined for the self-employed to 16%.In 2019/20 self-employed people paid around £830m into their personal pensions. Though, this figure is down from the £1.15bn paid in the previous year.It is thought that due to the COVID-19 pandemic, this figure would have reduced even further … [Read more...]
Employee Experience the focus of Post-Covid Business: How prepared is your business?
Many employers are making sincere changes to their businesses in order to incorporate the increasingly popular Hybrid Working Model and prioritise Employee Mental Wellbeing. The UK Government's initial response to the Covid-19 pandemic was to impose a countrywide lockdown, enforcing workers to work remotely from home where possible. Businesses as a result, had to adjust and comply with new regulations for the safety of its workers.Subsequently, the effects of lockdown has now … [Read more...]
Effects of the Payroll working rule on education sites and employment agencies in the public sector research study 2017
The HMRC ahead of the 2021 IR35 roll-out, republished two 2017 research studies that investigated the effects of the payroll working rule in the public sector on education sites and employment agencies. In 2021 the HMRC commissioned IFF Research and Frontier Economics to gather evidence of longer-term effects of the off-payroll working reform implemented in the public sector in 2017. Findings for both reports combined were gathered from 51 quantitative and 40 qualitative interviews. … [Read more...]
Know your IR35 status
Does your payroll include self-employed workers, contractors or consultants? A small piece of legislation is set to have a large impact on businesses. Understanding your IR35 status may save you from back paying unpaid tax. From the 6th April, 2021, all public authorities and medium to large sized businesses will be responsible for deciding the employment status of workers. Failure to comply could result in hefty workers tax and National Insurance shortfalls becoming the employer’s … [Read more...]
Tax avoidance, what’s the latest?
Back in April, we posted a blog surrounding NHS workers being targeted by tax avoidance promoters and it does not stop there.News surrounding tax avoidance schemes are still circulating outside of the NHS services. HMRC have shared information surrounding the schemes and what to look out for. Information can be found hereMost umbrella companies are compliant with tax rules. However, there are some promoters of tax avoidance schemes using comparison and broker websites, as well as direct … [Read more...]
HMRC Tackling Construction Industry Scheme Abuse
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...]