The Low Incomes Tax Reform Group (LITRG) has recently released a report that spotlights umbrella companies. With changes to IR35 legislation increasing demand for payroll intermediaries, the report sets out to provide valuable information for contractors, freelancers and agency workers. We’ve summarised the report below, and it makes for some interesting reading.
To help combat the coronavirus’s rising impact, England has been placed in a national lockdown for the third time. From midnight on the 4th January 2021, many businesses were forced to shut, and thousands of workers were told to work from home. To minimise the impact this will have on the UK, the government announced several support packages to help people cope with upcoming financial pressures. However, while the packages have been received well, the FCSA has responded by asking Chancellor Rishi Sunak for more help specifically for the contingent workforce.
Starting this week, Umbrella Company UK will start processing furlough pay for our eligible clients on 80% of total earnings (up to £2,500.00 per month) – with first payments due to begin this week. We will be backdating payments from March – for those who are eligible.
As things stand, Umbrella Company UK is still unable to offer furloughed leave to our umbrella clients. At such an unprecedented time, we understand that our clients need financial support more than ever before. This is why we are urging the government to provide much-needed clarification on how umbrella companies process Holiday Pay and the Apprenticeship Levy.
On Saturday 4th April, the government released more information on the Coronavirus Job Retention Scheme (CJRS). Interestingly, the updated guidance specifically references “umbrella companies”. While this is positive, there are still plenty of unanswered questions and the FCSA has described the new information as “contradictory”.
As things stand, it is possible that agency workers, including umbrella workers, will only be able to claim 80 percent of the National Minimum Wage – rather than traditional employees who can claim up to 80 percent of their salary.
In response to the coronavirus pandemic, the government has unveiled plans to help support the UK’s workforce. While we welcome the Coronavirus Job Retention Scheme, there are still plenty of unanswered questions about how the legislation will work – from both an employer’s and ‘furloughed’ employee’s perspective.
In response to the coronavirus pandemic, the government has unveiled plans to help support the UK’s workforce. While we welcome the Coronavirus Job Retention Scheme, there are still plenty of unanswered questions about how the legislation will work – from both an employer’s and ‘furloughed’ employee’s perspective.
Since launching in 2019, Umbrella Company UK has prioritised attaining FCSA accreditation – to showcase our dedication to compliance within the contractor payroll industry. From the beginning, we have intended to provide a modern and compliant umbrella payroll services to the UK’s temporary workforce. After careful consideration, we identified FCSA accreditation as the best way to display this to our partners and clients.
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