With the changes to Travel and Subsistence coming this April, thousands of contractors working through umbrella companies will see their take home pay reduced.
Despite the Government’s stance that contractors operating via umbrella companies will be relatively unaffected by the changes to Travel and Subsistence, the Union of Construction, Allied Trades and Technicians (UCATT) has claimed that this is not the case.
HM Revenue & Customs has claimed in a policy document that the changes will cost contractors just £360 a year. However, a calculation by union experts shows that the changes will cost the average construction worker a staggering £64.80 per week, or £3,369 per year, when operating via an umbrella company.
Brian Rye, UCATT National Secretary, said, “In the real world, £3,369 less a year will mean a lot less food on the table. Almost half a million workers will be significantly worse off after April, when this measure is introduced.”
How Churchill Knight & Associates Ltd can help:
Many contractors working through an umbrella company would be significantly better off owning and operating via their own limited company. If outside IR35 you would be unaffected by changes to Travel and Subsistence, and the associated losses highlighted above.
Churchill Knight can assist contractors in setting up their own limited company. We keep the paperwork to a minimum with our all-inclusive service that takes care of all your invoicing, payroll and bookkeeping.
To find out how you could be better off with Churchill Knight, use the button below to try our Take Home Pay Calculator. Or for a tailored quote, speak to one of our experts on 01707 871622 or request a callback below and we’ll call you back at a convenient time to suit you.