Contracting via umbrella company is widely considered as being the easiest method for contractors and freelancers to get paid. There is less of an administrative burden than operating through a limited company and getting paid is a quick and efficient process. We are regularly asked about umbrella company payroll by contract and freelance workers. Here are the answers to the…
The Apprenticeship Levy officially came into effect on the 6 April 2017. Whilst the levy itself is only 0.5% of a company’s total salary expenditure, this could potentially cost recruitment agencies thousands of pounds. Our latest blog summarises the levy and how it might impact your recruitment agency.
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.