The latest news affecting umbrella companies in the UK. Featuring HMRC, the Agency Workers Directive, the 2003 Agency Regulations, and IR35.
The Tory party is looking at ways to change the way employees pay NICs and income tax contributions. At present employers deduct these contributions at source and forward the monies to HMRC.
Businesses no longer have the opportunity to file paper copies of their Employer Annual Returns. HMRC is writing to employers in the UK reminding them that they must complete their PAYE returns online no later than 19th May if they wish to avoid facing a penalty charge of up to £3,000.
At the Royal Court of Justice last month, the retrospective effect of BN66 was last judged as lawful. The rule was being tested with regards to whether or not it breached an individual’s human rights.
As of yesterday any gangmaster or umbrellas company that abuses the tax free allowance travel scheme will have their licences revoked by the GLA.
The Recruitment and Employment Confederation is urging contractors who are owed money from umbrella companies that have gone into administration to contact the administrator in order to obtain settlement for outstanding invoices.
More confusion exists over the Agency Workers Directive, this time for limited company contractors. Some people believed that the Regulations exclude limited company contractors but this may not be the case.
Small business entrepreneurs are feeling optimistic about the end of the recession as they expect profitability and revenue to increase despite the anticipated rise in tax, regulation and minimum wage.
As social networking sites become more and more popular, the lines between work and social activities are in danger of becoming somewhat blurred according to Felix Wetzel, the group marketing director at Jobsite.
The government’s proposed increase in National Insurance Contributions could result in contractors finding placements harder to come by according to the CIPD.
An umbrella company is the ideal solution for contractors who do not wish to set up their own limited company or become self employed. For contractors seeking a way of working which allows them to work on several contracts without administration, then an umbrella company is the answer.
According the REC’s January Jobs Outlook report, 91 per cent of employers are “happy” with the service they are receiving from external recruiters.
Roger Tweedy, the REC’s director of research, said that the figure was positive especially when you consider the difficulties the job market has faced over the last 12 months.
Since the new AWD regulations were published last week various professional organisations have voiced their concerns.
New data from the Office for National Statistics shows that unemployment fell by 7,000 to 2.46 million in the three months to December 2009.
There appears to be more confusion over the timing of the implementation of the Agency Workers Directive. The government had pledged to refrain from implementing it until October 2011 and yet it now seems that they would actually be keen to have it in place before the dissolution of parliament.
Online recruitment is on the up according to Monster’s Employment Index for December. The index closed the year on a 12 month high, posting a reading of 120, a rise of four points on the November figure.
Small businesses across the UK are still struggling to obtain finance, in spite of the targets set by the government as part of its bail-out packages for some of the country’s biggest banks.
