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 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...]
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...]