Autumn Statement 2016 - Umbrella Company Changes Afoot

[eek]

Well if anyone feels like an easier, hassle free PAYE life - you all know where we are #wishfulthinking

Were I to end up in that position I would. Realistically based on the lack of expenses and my choice of location Permie would be a better solution.

[lucyclarityumbrella]

Yep not much of one. You've done rather better than most limited company contractors though...

Well if anyone feels like an easier, hassle free PAYE life - you all know where we are #wishfulthinking

[eek]

A very feint silver lining it appears for brollies

Yep not much of one. You've done rather better than most limited company contractors though...

[lucyclarityumbrella]

On the upside there will be an increase in public sector contractors using Umbrella's...

A very feint silver lining it appears for brollies

[eek]

On the upside there will be an increase in public sector contractors using Umbrella's...

[DotasScandal]

They say it never rains but it pours... when will they finally recognise the skills that the contracting world offer and reward them appropriately?

When a critical mass of contractors will have thrown the towel in disgust and left contracting alotgether, when the (perceived) golden goose is finally dead, that's when. For now and the foreseeable future, they see us as bottomless pockets to pick, not professionals to reward for their work.

[eek]

I know exactly where you are coming from - there are enough loopholes within this industry as it stands, however, my concern is the way in which we apply it will once again make us out to be the bad guys, and leave many in the industry pushing Ltd to those who should never operate in this way in the first place

True, but we end up back to the point we've all been making for years. There needs to be a fundamental look at what employment and self-employment means so that clear cut rules can be made and the current hotch-potch mess of fake self-employment removed.

[lucyclarityumbrella]

You know my opinion on this. While I dislike it at least the government has finally understood that exemptions mean loopholes so best to not allow exemptions to be made.

I know exactly where you are coming from - there are enough loopholes within this industry as it stands, however, my concern is the way in which we apply it will once again make us out to be the bad guys, and leave many in the industry pushing Ltd to those who should never operate in this way in the first place

[eek]

Lucy,

You know my opinion on this. While I dislike it at least the government has finally understood that exemptions mean loopholes so best to not allow exemptions to be made.

The PSC bit is something I missed before. Another piece of joined up yet utterly insane logic (surely it should be part of the Employers NI payment which was supposed to be paid at source - either by the public sector agency / department or the agency).

[lucyclarityumbrella]

Well today will bring some interesting times once again for the contracting industry, no doubt! Contractors working through umbrella companies took a battering last April with the introduction of the Travel & Subsistence Legislation and it appears that there will be no such let up for contractors once again with the introduction of the Apprenticeship Levy and the IR35 changes to the Public Sector.

So after much campaigning, shouting and screaming to HMRC & MPs, CU have had written confirmation that the Apprenticeship Levy will be applied to the payroll figure for EVERY employer, with NO exemptions! This will have significant knock-on effects in the industry, CU approached the relevant people to campaign against the changes or to look for an exemption as their payroll figure is not a true representation of the profit made by the company, but to no avail. A letter received this morning by the Rt Hon Robert Halfon MP stated that it would be possible to set a "fee" to reflect these costs! So in simple terms, they perceive that once again the contractor will have to stomach these financial changes, which will be reflected in their reduced take-home pay. In reality, it would have been the end client taking on board these costs if they were permanently employed, but whether they will consider increased rates to cover the additional 0.5% is yet to be seen!

For a government that relies so heavily on contractors, these changes seem to be made with no consideration to the value the temporary workforce that they readily employ on contracts.

If you read the notes accompanying the Finance Act 2016 issued by the AAT, it is being suggested that the Apprenticeship Levy is also to be applied to Public Sector PSCs, on the basis that this would probably be due if they had been employed directly.

They say it never rains but it pours... when will they finally recognise the skills that the contracting world offer and reward them appropriately?