Many contractors and freelancers in the United Kingdom use umbrella companies as their preferred choice of payroll provider. However, some of your candidates will be better suited to an umbrella company than others. Here we have a look at who should use an umbrella company for their payroll.
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.
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.
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.