The Autumn Statement 2024

[ChimpMaster]

How much is my house price going to go up in the next year?

Probably the standard 5% or so. Prices aren't coming down, even with interest rates threatening to remain where they are.

As a Tory voter I am relieved that this hasn't hit me so hard as a landlord. I guess the Tories did all the damage they could already to the property sector.

[ladymuck]

This is interesting, just had an email from HMRC with a summary of things in the budget that employers need to know:

Umbrella Companies
To tackle the significant levels of tax avoidance and fraud in the umbrella company market, the government will make recruitment agencies responsible for accounting for PAYE payments made to workers that are supplied via umbrella companies. Where there is no agency, this responsibility will fall to the end client business. This will take effect from 6 April 2026. Further detail is set out in this paper policy.

https://www.gov.uk/government/public...company-market

[willendure]

This is interesting, just had an email from HMRC with a summary of things in the budget that employers need to know:

Umbrella Companies
To tackle the significant levels of tax avoidance and fraud in the umbrella company market, the government will make recruitment agencies responsible for accounting for PAYE payments made to workers that are supplied via umbrella companies. Where there is no agency, this responsibility will fall to the end client business. This will take effect from 6 April 2026. Further detail is set out in this paper policy.

https://www.gov.uk/government/public...company-market

Kind of begs the question what does the umbrella company actually do? Already just a bunch of leeches that charge for not very much, and now it sounds like they will essentially be doing nothing at all. I suppose they could always put their fees down to £0.

[vetran]

This is interesting, just had an email from HMRC with a summary of things in the budget that employers need to know:

Umbrella Companies
To tackle the significant levels of tax avoidance and fraud in the umbrella company market, the government will make recruitment agencies responsible for accounting for PAYE payments made to workers that are supplied via umbrella companies. Where there is no agency, this responsibility will fall to the end client business. This will take effect from 6 April 2026. Further detail is set out in this paper policy.

https://www.gov.uk/government/public...company-market

ooh agents are going be pissed!

[Andy2022]

This is interesting, just had an email from HMRC with a summary of things in the budget that employers need to know:

Umbrella Companies
To tackle the significant levels of tax avoidance and fraud in the umbrella company market, the government will make recruitment agencies responsible for accounting for PAYE payments made to workers that are supplied via umbrella companies. Where there is no agency, this responsibility will fall to the end client business. This will take effect from 6 April 2026. Further detail is set out in this paper policy.

https://www.gov.uk/government/public...company-market

This seems like a good move for everyone except umbrellas

[jamesbrown]

Kind of begs the question what does the umbrella company actually do? Already just a bunch of leeches that charge for not very much, and now it sounds like they will essentially be doing nothing at all. I suppose they could always put their fees down to £0.

In practice, it means that the agency (or end client) will be responsible for PAYE taxes, but won't be required to operate payroll. As far as I can see, it's akin to an agency engaging a sole trader, which they generally won't do because they are liable for any shortfall in taxes paid. In terms of how clients/agencies react to ensure compliance, I don't know. They may be satisfied with their compliant umbrella operating payroll on their behalf. Or they may decide to operate agency payroll. If the latter, they could also decide to retain the umbrella to pay the worker, deducting the taxes themselves, but remitting the net payment to the umbrella for onward payment to the worker. I expect lucyclarityumbrella can shed some light about the likely impacts, but I expect the impacts are not dramatic for compliant umbrellas.

[eek]

In practice, it means that the agency (or end client) will be responsible for PAYE taxes, but won't be required to operate payroll. As far as I can see, it's akin to an agency engaging a sole trader, which they generally won't do because they are liable for any shortfall in taxes paid. In terms of how clients/agencies react to ensure compliance, I don't know. They may be satisfied with their compliant umbrella operating payroll on their behalf. Or they may decide to operate agency payroll. If the latter, they could also decide to retain the umbrella to pay the worker, deducting the taxes themselves, but remitting the net payment to the umbrella for onward payment to the worker. I expect lucyclarityumbrella can shed some light about the likely impacts, but I expect the impacts are not dramatic for compliant umbrellas.

Agencies still won't want to run payroll - the question becomes 1 of how can an agency be 100% sure the umbrellas they allow are 100% compliant.

[hobnob]

This will provide some justification when an agency says "You have to use one of the umbrellas from our shortlist" (rather than letting you choose your own).

[GJABS]

This will provide some justification when an agency says "You have to use one of the umbrellas from our shortlist" (rather than letting you choose your own).

Which will probably be restrictive, like refusing to allow you to salary sacrifice into your sipp pension.

[gables]

Kind of begs the question what does the umbrella company actually do? Already just a bunch of leeches that charge for not very much, and now it sounds like they will essentially be doing nothing at all. I suppose they could always put their fees down to £0.

It's more than just paperwork though isn't it? By that I mean contractors get paid way before the umbrella gets the money for the timesheet\invoice. I appreciate this was much the same with an agency and Ltd but that seems quite a bit simpler i.e. my Ltd invoices the agency, they pay me before the client pays them and that was it.