It is understandable that your candidates will want to maximise their take home pay. However, using an offshore intermediary could land them in serious trouble with HMRC and your recruitment agency could also be punished as a promoter of a tax avoidance scheme. Find out more about the risks of referring your candidates to offshore intermediaries.
Contractors working through umbrella companies were hit hard by changes in legislation concerning claiming expenses. Starting on the 6th April 2016, HMRC introduced legislation that significantly reduced the number of contractors able to claim tax relief on travel and subsistence expenses. In fact, umbrella workers are usually not considered for expense claims.
A new tax avoidance scheme that disguises remuneration by paying contractors with a combination of a smaller salary and loyalty points has been identified by HMRC. Users and promoters of job board tax avoidance schemes are already being investigated and are being urged to contact HMRC immediately to get their tax affairs in order.
Many people who either are looking to start their own business, or are a contractor or freelancer looking for a payroll solution, hear that limited companies are a tax-efficient way to operate in the UK. But with all the confusing jargon surrounding it, what is a limited company really and how can operating one benefit you?
There has been a lot of talk about the changes to off-payroll legislation in the public sector that went live on 6 April 2017. Contractors and their recruitment agencies have been heavily impacted by the changes and this article will summarise the best payroll options available to contractors working in the public sector.