Have umbrella companies told their clients what their plans are after April?

[Waldorf]

With the effective removal of travel expenses from April 2016 I've not heard much from the big or smaller operators about their plans.

I guess many will be trying to move over most of their clients to Limited companies, assuming they can get round the facilitation provision of the MSC legislation.

It seems to me only the foolish would stick to an umbrella post April, so are we going to see a late mad rush to go Ltd as April gets nearer? I can recall the rush in 2007 when the MSC rules came in, anyone remember Brookson not answering their phones for a few months whilst they changed over?

I've looked at a few of the brollies websites but cannot find any mention of the new rules, are they trying to hide the bad news from their clients?

[mudskipper]

Not sure it's that simple - at least one reason for using a brolly is not to have to worry about IR35. It would be interesting to see some stats on how far brolly users (specifically) typically travel for work. There must be a point that it becomes a deal breaker.

[eman]

It seems to me only the foolish would stick to an umbrella post April

Seems like a bit of a sweeping generalisation - what about those operating within IR35? Or those only contracting short term? Ease of management, don't want the stress of running a Ltd Co and having the associated legal responsibilities?

[Waldorf]

Seems like a bit of a sweeping generalisation - what about those operating within IR35? Or those only contracting short term? Ease of management, don't want the stress of running a Ltd Co and having the associated legal responsibilities?

Wouldn't they just be employed directly by the agency, similar to 'temps' who can remember when we had them.

[SueEllen]

Wouldn't they just be employed directly by the agency, similar to 'temps' who can remember when we had them.

Nope as then they would be agency workers. A headache agencies don't want.

[LisaContractorUmbrella]

We have told our workers and I am pleased to say there has not been a mass exodus The reason you have probably not heard much on the subject is that we are still awaiting the final legislation which, helpfully, should come out about a fortnight before it comes into effect We have also had very little guidance from HMRC so no-one knows what would be acceptable to them as 'evidence' that SDC doesn't exist; the lawyers are still trying to work out how you prove that something doesn't exist! Many of us have been emailing HMRC non-stop with our own questions as well as contractors' questions but they are just not responding so I am not sure if even they know how this should all work

[Yonmons]

My Umbrella (Paystream) have been chasing me to change over to their "MY PSC" scheme, the only reason I would change to that is it would be easy to deal with my agency as they will do the donkey work, but I have decided that I am giving my notice on the contract I am on 2 weeks notice from 25th of March takes me 3 days into the new tax year Ill have to take the hit for the 3 days. I have previously said I cant take the hit on T&S on the gig I am on.

[LondonManc]

We have told our workers and I am pleased to say there has not been a mass exodus The reason you have probably not heard much on the subject is that we are still awaiting the final legislation which, helpfully, should come out about a fortnight before it comes into effect We have also had very little guidance from HMRC so no-one knows what would be acceptable to them as 'evidence' that SDC doesn't exist; the lawyers are still trying to work out how you prove that something doesn't exist! Many of us have been emailing HMRC non-stop with our own questions as well as contractors' questions but they are just not responding so I am not sure if even they know how this should all work

Could HMRC prove Catholic rather than CofE and pull out at the last minute?

[northernladuk]

My Umbrella (Paystream) have been chasing me to change over to their "MY PSC" scheme, the only reason I would change to that is it would be easy to deal with my agency as they will do the donkey work, but I have decided that I am giving my notice on the contract I am on 2 weeks notice from 25th of March takes me 3 days into the new tax year Ill have to take the hit for the 3 days. I have previously said I cant take the hit on T&S on the gig I am on.

I am sure I keep getting this wrong but won't giving notice your brolly mean your last location becomes your permanent one which means you can't claim T&S anyway as it's no longer temporary?

[LisaContractorUmbrella]

Could HMRC prove Catholic rather than CofE and pull out at the last minute?

that really made me chuckle!

They are unlikely to change their minds if that's what you mean - it's far more likely that they will introduce something else alongside all this at the last minute which will effectively stop or slow a mass migration to Ltd. If they don't, the loss to the Treasury could be significant - with PAYE paid at 95% of turnover through a Ltd, the flat rate scheme and the risk that contractors will decide to ignore IR35. Back of a fag packet calculations showed that they could lose an awful lot more money than the changes are going to bring in but if this is all just political paybe that doesn't matter. Who knows what HMRC will do but you can guarantee it won't be anything to make people better off