This article explains how tax avoidance schemes are targeting key workers – especially those who are returning to work as an extra line of defence against the coronavirus. It will also summarise the serious threats to recruitment agencies, and what you must to do to remain compliant and avoid penalties from HMRC.
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.
If we rewind to 17th March this year, the Government announced they would be delaying off-payroll (IR35) in the private sector by 12 months. However, despite the delay, they have faced much scrutiny from professional bodies, temporary workers and employment agencies – because they all believe the legislation should be overhauled, or scrapped entirely.
As part of their coronavirus support strategy, the government has introduced bounce-back loans for small and medium-sized businesses. Formally known as The Bounce Back Loan Scheme (BBLS), our limited company clients could be able to borrow between £2,000 and up to 25% of their turnover. The maximum amount available as part of the BBLS is £50,000. However, should you require more, additional government support may be available through other avenues.
Starting this week, Churchill Knight Umbrella will start processing furlough pay for our eligible clients on 80% of total earnings (up to £2,500.00 per month) with first payments due to begin this week.
Churchill Knight is aware that there is a lot of open discussions about umbrella companies and the furloughing of their clients on social media. We are pleased that that concerned parties are looking for answers on social media – as this is precisely what it is there for. However, we’re worried that several groups are claiming to have umbrella employees interests at heart, but are sharing incorrect and misleading information.
The government has created numerous support packages to help small businesses and contractors during the coronavirus pandemic. This includes the Coronavirus Job Retention Scheme and a similar scheme designed exclusively for the self-employed. This blog will summarise what support is available to small business owners, contractors and freelancers.
As things stand, Churchill Knight Umbrella is still unable to offer furloughed leave to our umbrella clients. At such an unprecedented time, we understand that our clients need financial support more than ever before. This is why we are urging the government to provide much-needed clarification on how umbrella companies process Holiday Pay and the Apprenticeship Levy.
The FCSA has demanded immediate answers from the government regarding the Coronavirus Job Retention Scheme (CJRS) and the impact on agency and umbrella workers. There are still many issues that need clarity to ensure over 600,000 contractors gain access to financial support through the CJRS.
New legislation came into effect on 6th April 2020 that requires all agency workers to be given a Key Information Document (KID) before agreeing to work with an employment business – as part of Regulation 13A of the Conduct of Employment Agencies and Employment Businesses Regulations 2003.
