It was announced in the 2016 Budget that those working through an umbrella company (or similar intermediary), and who are subject to Supervision, Direction or Control (SDC), will no longer be able to claim Travel and Subsistence expenses from 6 April. We will discuss SDC in accordance to HMRC, and help you determine whether you…
On Wednesday, the 2016 Budget was presented to MPs in the House of Commons. This year’s Budget has reiterated the government’s intention to clamp down on those they perceive to be avoiding taxes. We are yet to receive definitive information on many of the topics relating to contractors and the self-employed; however, the imminent release…
As discussed in our February article, ‘What are HMRC changing in legislation for Travel and Subsistence?’, from 6 April 2016, the government have decided to bring in legislation that will affect our expanding temporary workforce in the United Kingdom. In the Cloud9 Umbrella/K&B Accountancy Group offices, we are finding that many contractors are still in…
The new tax year is fast approaching and we are noticing a trend in umbrella contractors who are incorporating their own personal service company (PSC) in order to minimise, or even mitigate the restriction on Travel and Subsistence expenses. While we cannot comment on any particular models offered by other accountancy and umbrella service providers,…
With so many umbrella companies in operation today, it is crucial that you are confident in your payroll provider being both compliant and trustworthy. Recent changes to tax and employment legislation means that your agency could be liable for penalties, or even subject to debt transfer. By having a Preferred Suppliers List (PSL), or an…
April 6th is fast approaching and there are a number changes coming into play that will have a vast impact on our temporary work force. Whilst nothing is set in stone until the budget is published on March 16th, here is an outline of what to expect… The government have introduced new legislation which will…
Since the public sector reform in April 2017, we are still asked frequently by public sector contractors if they should continue using their own limited company or switch to an umbrella. The answer very much depends on each individual’s circumstances thus we would strongly encourage contractors to speak to us for tailored advice. Nonetheless, we…
It has been a turbulent year for contractors, especially those who work within the public sector and have been hit by the introduction of the “off-payroll” reforms in April. Now a storm of risky umbrella firms are luring temporary workers with promises of higher take-home retentions in a bid to sidestep the tax crackdown that’s…
The 2019 Loan Charge is HMRC’s next step in their crackdown on tax avoidance. They aim to recover unpaid taxes they deem to be owed by thousands of contractors who have used a disguised remuneration scheme. HMRC will be looking to collect payment for retrospective taxes from any individual who has used a disguised remuneration…
If you’re a contractor and a new role comes up through a recruitment agency you will probably want to use an umbrella company to manage your PAYE needs. You may have used an umbrella company previously or you might have just checked an income calculator to find an umbrella company with the best deal. Either…
The outlook of the job market in 2018 continues to look promising for contractors. Vacancies, billings and pay rates remain encouraging, persistently growing throughout December and into the New Year. According to recruitment agencies surveyed for the REC/IHS Markit Report on Jobs, the introduction of new projects and a greater demand for short-term workers contributed…
Tax avoidance was once again at the forefront of the government’s agenda in the Autumn Budget. A topic that has been meticulously discussed, Philip Hammond announced during his speech on Wednesday 22nd November 2017 that “the Government is committed to tackling tax evasion, avoidance and aggressive tax planning.” We’ve already seen an increased focus from…