The latest news affecting umbrella companies in the UK. Featuring HMRC, the Agency Workers Directive, the 2003 Agency Regulations, and IR35.
The Labour party released its election manifesto yesterday and it did not contain many new policies relating to tax and businesses They did promise to keep business taxation competitive and encourage investment by increasing capital allowances.
From 6th April 2010, new PAYE regulations mean that HMRC will accept the use of electronic P60s (also known as eP60s). This is great news for large employers, such as umbrella companies.
The REC’s latest report on jobs shows that in March growth in temporary placements reached the strongest level for nearly 3 years. This proves the “vital flexibility” that temporary and contract workers, including umbrella company contractors, provide for UK businesses.
Gordon Brown is going to strengthen the links between the Points Based System and training UK workers in a bid to fill the UK’s skills gap.
HMRC is in line for a tough year as they face more cost cuts whilst continuing to find and chase tax evaders. This could have a knock on effect on those who work through umbrella companies.
Only 35% of IT workers in Europe are female according to the latest European survey by the IT Job Board. This could be about to change however as more women are now entering the sector.
How quickly the months roll around, the first quarter seemed to just disappear with minimal upset for most umbrella companies (there were a couple of exceptions).
There have been a lot of complaints recently about the proposed hike in NICs and the Tories seem to have taken heed.
Offshore tax evaders could face penalties of up to 200% after a consultation which was launched in the 2009 Pre-Budget Report.
Last week’s employment figures from the ONS showed that the number of people in work in the quarter ending January 2010 was 28.86 million. 54,000 people in full time work lost their jobs during that period bringing the employment rate down to its lowest since November 1996.
According to reports from the REC, there has been a recent surge in the number of job vacancies for high end workers in the financial sector.
There has been a lot of talk in the recruitment media recently about the use of umbrella companies and their role in the freelance chain. Some say that recruiters couldn’t survive without them while others are a little less convinced.
According to the findings of a new survey by XLN Telecom, SMEs including umbrella companies and recruitment agencies, do not think that Tory victory at the next general election will result in a dramatic upsurge in business.
Limited company contractors could once more be in the firing line with HMRC. According to accountancy firm Smith & Williamson, HMRC will be closely monitoring the use of dividend payments between now and the end of the tax year.
The REC has just published its latest Jobs Outlook report and the news looks good for contractors over a range of sectors.
HMRC is urging employees, sole traders, limited company contractors and umbrella company workers to contact them if they believe they have received an incorrect tax code this year.
