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.
Some contractors that are employed through agencies and umbrella companies are signing up to arrangements that claim to maximise their take-home pay and retain up to 90% of their income after tax and NI. But these are clearly tax avoidance schemes.
HMRC is on the path to take down the practice of tax avoidance and tax evasion by introducing measures preventing taxpayers from taking advantage of the system.
Since 6th April 2016, Supervision Direction and Control (SDC) has restricted the expense claims – such as travel and subsistence – that contractors working through an umbrella company are allowed to claim.
