Lloyds, HSBC, Morgan Stanley, Barclays and Tesco Bank have all told their contract workers that they will no longer be able to work through a limited company. Going forward, these banks will all require their contract workers to go PAYE.
Following changes to off-payroll working in the public sector in 2017, research from APSCo found that 55% of professional recruitment companies had witnessed a drop in the use of PSCs, with most of this movement into umbrella companies. A survey of the trade association’s membership revealed that 91% of the professional recruitment firms polled believe that an increasing number of contractors will turn to umbrella companies in response to the new rules that come into effect in April 2020.
*Updated 24th March 2020*
Recent changes to IR35 legislation mean that all contractors should be aware of the facts. Although IR35 is both complex and controversial, the good news is that Amaze Umbrella offers you a fully compliant solution, so that you never have to worry about being caught out. Below is a brief explanation of the legislation and how Amaze gives you peace of mind.
With contracting becoming an increasingly popular way of working, there’s been a boom in the number of umbrella companies entering the market. Although this gives contractors more choice when it comes to selecting an employment solution, it can also complicate the process. Many contractors don’t have the time to research various umbrella companies, or know what to look for in a reliable payroll provider. Nearly all umbrella companies will market themselves as compliant, but as recent activity surrounding IR35 has shown, this term can be misleading. Changes in legislation can leave contractors vulnerable to HMRC investigations and large retrospective tax bills. There are a number of unscrupulous employment providers who operate various schemes to reduce tax liability while claiming to be fully compliant. At Amaze, we understand that making the wrong decisions can have serious consequences for contractors. Not only do we aim for maximum compliancy with approval from independent regulators, we also aim for transparency, so that your payment process is clear and straightforward at every stage. Below we’ve put together some guidelines on what to look for when it comes to selecting a compliant umbrella company, and what to avoid.
An investigation conducted by a leading industry body has uncovered statistics that point to public sector organisations making blanket IR35 determinations.
The investigation obtained information from various organisations using a freedom of information request. So far, it’s been revealed that 99% of contractors working for Network Rail and 98% of those working for HS2 were deemed inside off-payroll rules in 2018. HS2 has confirmed the alarming statistic that out of the 1,001 assessments conducted in 2018, only 22 contractors returned an ‘outside’ IR35 verdict.