What should private sector organisations already have done to prepare for changes to off-payroll legislation (IR35)?

End client, Government, IR35, Legislation, Private SectorLeave a comment

The much-debated changes to off-payroll in the private sector (IR35) are coming into effect in April 2021. As a result, private sector organisations should already have reliable procedures to ensure each member of their temporary workforce receives a fair IR35 status assessment. This article will set out to answer the question – what should private sector organisations already have done to prepare for changes to off-payroll legislation (IR35)?

How will upcoming changes to off-payroll in the private sector (IR35) impact limited company contractors?

Government, IR35, Legislation, PayrollLeave a comment

Having been delayed for 12 months in response to the coronavirus pandemic, changes to off-payroll in the private sector (IR35) will be coming into effect in April 2021. This doesn’t mean the end of contracting through a limited company in the private sector. However, it does mean that contractors with a personal service company (PSC) will no longer be able to determine their IR35 status. Instead, it’ll become the end-clients responsibility (if they’re classified as a medium or large sized organisation). Keep reading and find out more about how the upcoming changes to off-payroll in the private sector (IR35) will impact limited company contractors.

Ruling is made by Supreme Court on the Financial Conduct Authority’s business interruption case

FCA, Insurance, LegalLeave a comment

In a much-anticipated verdict, the Supreme Court has made its judgement on the Financial Conduct Authority’s (FCA) business interruption (BI) insurance case. And, after delivering their decision in a live stream, the Supreme Court has allowed the FCA’s and the Hiscox Action Group’s (HAG’s) appeal. The outcome is excellent news for BI insurance policyholders because appeals made by six leading insurers have been dismissed. Keep reading and find out more about this landmark case.

The FCSA writes letter to Rishi Sunak asking for more support for contingent workers

Coronavirus, Economy, FCSA, GovernmentLeave a comment

Phil Pluck, Chief Executive at the Freelancer and Contractor Services Association (FCSA), has written a letter to Chancellor Rishi Sunak pleading for more support for the UK’s temporary workforce. The letter has been written in response to the support measures that were announced after the UK’s third lockdown was confirmed in early January.

Contractors – only use an accountant or umbrella company that is accredited by the FCSA

Accountant, Advice, Contractor, FCSA, Umbrella CompanyLeave a comment

There are more contractor accountants and umbrella companies than ever before. In fact, new companies seem to be entering the marketplace on a daily basis! As a result, choosing the right provider for your circumstances may be difficult, and you may be left scratching your head.
With so many to choose from, how can you be sure which one will offer you the best, most reliable service? It’s not an easy question to answer. Still, we do have some invaluable advice that should make the experience far easier for you – only choose an accountant or umbrella company that is accredited by the Freelancer & Contractor Services Association (FCSA). Keep reading, and we’ll explain why this is so important.

Useful tips to help you choose the best umbrella company for your payroll

Advice, Contractor, Umbrella CompanyLeave a comment

Umbrella companies have been around for years, but since the recent changes to off-payroll legislation (IR35), there has been a noticeable rise in the number of umbrella companies targeting UK temporary workers. With so many options, how do you know which umbrella company is best for your circumstances, and what should you be aware of when selecting one for your payroll?
HMRC is continuously stepping up their efforts in catching contractors engaging with non-compliant payroll services; choosing a compliant umbrella has never been so crucial. To help you make well-informed decisions, we’ve come up with eight useful tips to help you pick an umbrella company you can truly rely on.

IR35 victory for HMRC results in Talksport presenter facing substantial tax bill

HMRC, IR35, Legislation, Limited CompanyLeave a comment

Last year, a first-tier tribunal went in favour of Talksport presenter and comedian Paul Hawksbee. It was found that Paul and his personal service company (PSC) Kickabout Productions Ltd were operating compliantly and outside IR35. Interestingly, it wasn’t the first time HMRC had lost a case regarding IR35, and it looked as if they were continuing to lose credibility on the legislation and their understanding of how it applies in practice. After an appeal from HMRC, an upper tribunal ruled in favour of HMRC – almost 12 months after the original ruling. As a result, Paul Hawksbee faces a tax bill of nearly £140,000.

Disguised remuneration schemes: HMRC is changing its angle of attack, and they may need your help

Advice, Contractor, Disguised Remuneration, Government, HMRC, Loan Schemes, Tax AvoidanceLeave a comment

In an unusual appeal, HMRC has asked for the assistance of organisations and workers in gathering evidence to help tackle unethical disguised remuneration schemes. More precisely, HMRC is looking for stakeholders to help them understand why people are continuing to engage with disguised remuneration schemes, how they can identify new schemes, and where they can take further action to close schemes and reclaim unpaid tax fairly.

Can personal service company (PSC) contractors benefit from the £1,000 Job Retention Bonus?

Advice, Contractor, Government, Limited CompanyLeave a comment

Since the Coronavirus Job Retention Scheme (CJRS) went live in March, over one million businesses have made a claim. As a result, over 9 million employees have been able to keep their job, as they have been placed on furloughed leave.
In July’s Summer Statement (8 July), Chancellor Rishi Sunak announced a series of packages “to support jobs in every part of the country, give businesses the confidence to retain and hire, and provide people with the tools they need to get better jobs.” One of these packages is the Job Retention Bonus.
More information on the Job Retention Bonus is scheduled to be available later in July. However, keep reading and find out what we already know about the Job Retention Bonus, and whether or not it could be useful for contractors operating through a personal service company (PSC).

Umbrella companies: What is fact and what is fake news?

Advice, Contractor, Payroll, Umbrella CompanyLeave a comment

The coronavirus pandemic has put monumental stress on key workers in the UK, including NHS staff, carers and emergency workers. To show their appreciation, businesses have been offering key workers special discounts and offers. However, HMRC has been made aware of multiple tax avoidance schemes that have been targeting key workers (especially NHS) and trying to mislead them into avoiding their legal tax responsibilities.