Amendments to the Finance Bill to consider regulating the umbrella sector were discussed in Parliament. While not taken forward at this time, it is fair to say that all those who currently comply with existing legislation would support sensible legislation together with a regulatory body to stop the unscrupulous behaviour of the minority within the umbrella market.
On 29th April HM Revenue & Customs (HMRC) updated its guidance on working through umbrella companies to give more clarity about how the supply chain works and what a contractor should expect from an umbrella company. Find out what they said...
At his Budget on 3rd March Chancellor Rishi Sunak was sparing in the detail of the Government’s long-term COVID-19 tax recovery plans. Budgets normally provide us with a clue as the tax strategy for the coming few years through the publication of HM Treasury’s consultation and discussion papers. The subjects of the ‘call for evidence’ gives us an insight into the Government’s medium - longer term fiscal thinking. This year these plans were slightly held back until 23rd March 2021...
A question that we are asked a lot, by agencies and end clients, is whether we think the off-payroll legislation will be delayed again. Although there was relief last year when the off-payroll rules were postponed there was also frustration for the companies that had taken the time and trouble to get there processes right. This has led to a reluctance this time round to carry out work unless absolutely necessary when they are so many other issues to deal with.
At the time of writing we are all expecting Chancellor Rishi Sunak’s 2021 Budget to be delivered on 3rd March. The worldwide health issues caused by the COVID-19 pandemic together with the knock-on economic effects since his last Budget will inevitably be reflected in the content of Budget 2021.
HMRC introduced its ‘Check Employment Status Tool’ (CEST) in 2017 to assist employers, hirers and workers in determining the employment status of the worker to ensure that the correct tax and National Insurance Contributions were paid. However it has faced criticism, we take a look to see whether it is fit for purpose in this blog.
As stated in our previous blog article - ‘IR35 errant clause’ is much ado about nothing, the Government has now confirmed that the off-payroll legislation will not affect umbrella companies and that the legislation itself will be amended to clarify the definition of “intermediary”.
This week some commentators picked up on the drafting flaw and published articles warning against the use of umbrella companies unless tax was deducted before paying the umbrella company. This seemed counterintuitive to us since one of the benefits to agencies and contractors (and HMRC) of using umbrella companies is the assurance that the correct levels of tax are paid.