The Chancellor Rishi Sunak has opened the Treasury chequebook again and unveiled a new set of measures to "protect, support and create jobs" and get pubs and restaurants "bustling again". These include: incentives to encourage businesses to hire new staff; grants to help “green” industries; a stamp duty holiday for home buyers; a VAT reduction for the hospitality sector as well as funding discounts for those eating out.
The off payroll rules will still go ahead in 2021 after a motion to delay it a further 2 years was defeated in the House of Commons last night. This means the Finance bill will now move to the reporting phase before being passed to the House of Lords.
As the world starts to adjust to what the ‘new normal’ will look like, our sector is no different. The Government is keen to get the economy restarted and we all know how important the flexible workforce is in rebuilding a strong economy. They have already announced their plans to bring furlough to a close as they are keen to get the economy restarted.
When the Government introduced the Coronavirus Job Retention Scheme (CJRS) the country breathed a sigh of relief. However it was short lived for our umbrella employees because once we had all digested the guidance, it was clear that the Government hadn’t fully considered the way in which an umbrella employee works, and more specifically how the definition of regular salary should be interpreted for such an employee.
In this article we look at the challenges around furlough for umbrella employees. In particular the frustration and confusion created by differing opinions as to whether furlough pay is calculated on gross pay or basic pay.
In this article we take a look at the question that is proving so controversial: how do you calculate furlough pay for umbrella workers? But before we go into the legal technicalities we think it is important to say that this could be cleared up in a minute if the Government were to say; “for umbrella companies it works in this way.”
A shock announcement last night saw Chief treasury secretary Steve Barclay announce that the change to the off-payroll working rules will be delayed for one year to 6th April 2021. This is part of additional support for businesses and individuals to deal with the economic impacts of Covid-19. The delay means that the different rules that exist for inside and outside the public sector will continue to apply until 6 April 2021.
With the introduction of the new legislation due in a matter of weeks you will spot a trend with this month’s newsletter – help and advice regarding the off-payroll working legislation. For instance, if you’re a limited company contractor affected by the changes, you may not be aware of how an umbrella company differs from an agency payroll, so we explain the difference between the two and the benefits that can be gained from working as an umbrella company contractor.
The last minute review of how the new rules would operate, brought about by an intense campaign by and on behalf of the contracting industry, led to HMRC undertaking a detailed review of the draft legislation due to come into effect on 6th April 2020. Here is a quick look at the key outcomes and what you need to know ahead of the deadline.