Umbrella companies allow contractors to achieve IR35 compliance. If a limited company contract is deemed ‘inside IR35’, contracting through an umbrella company is usually preferable.
This will become more important as an upcoming rule change will mean that many more contractors are caught out by IR35 legislation.
We hope you are staying safe in these testing times.
The Job Retention Scheme has been announced by the government to support those PAYE workers who have been laid off due to the coronavirus.
Unfortunately as a business we are restricted by the pace in which the government releases the detail. The Directors here at umbrella.co.uk are in talks with our employment lawyers continuously about the Job Retention Scheme as well as liaising with industry bodies like the FCSA & APSCo. See the latest response from the FCSA here.
Rest assured we are hoping to be in a position where those whose assignments are terminated due to Covid 19 are able to be furloughed. However, until we are comfortable with the detail we cannot provide you with confirmation.
Once we have the full detail from the government in terms of how furlough payments can be processed for umbrella employees, we will be back in touch with the information you need.
We are delighted to announce that Stephen Holt, Payroll Assistant, has won December Umbrella.co.uk Employee of the Month.
“Stephen always goes the extra mile to help agencies and our internal teams, ensuring contractors get paid correctly and on time. A crucial team player who’s enthusiasm and positive attitude shines through every day.
Congratulations Stephen for your double December win…Employee of the Month and got engaged! Well done and keep up the good work.” Jon Biddle, Director.
Congratulations to Allison Gallagher, Finance & HR Manager, on winning July Umbrella.co.uk Employee of the Month.
Allison has been invaluable and hard working member of the team for 9 years.
“Well done to a very deserving winner!" Simon Pearson, Finance Director.
A new report into contractor productivity has found that firms with at least 11% of their workforce as contractors are more productive, with each employee generating an extra £4,669 for their organisation on average.
Researchers from the Trinity Business School and the University of Derby said the results showed the important role that contractors can play in the UK’s recovery.
Government guidance issued on 4 April confirms that Company Directors are eligible to be furloughed and receive support through the Coronavirus Job Retention Scheme (CJRS). This is welcome news as Directors could get paid 80% of wages, up to a monthly cap of £2,500.
If the furlough option is followed, the Director may not work for a minimum 3 week period and may only carry out statutory duties set out in the Companies Act 2006. The decision to furlough should be formally adopted as a decision of the company, noted in the company records and communicated in writing to the Director(s) concerned.
If you require further information regarding furlough, please email email@example.com or follow the following useful links:
Keep well and stay safe. We will continue to update you with any relevant information.
Umbrella.co.uk have of course been putting together comprehensive plans to ensure that we are fully prepared for whatever the next few months brings.
The planning has considered all key parts of our business. We consider these to be:
- Business partner relationship management
- New business consultation and registration
- Contracting with and onboarding of new clients
- Submission of timesheets and expenses
- Customer service
We obviously hope that the situation is unlikely and will not occur but, should the worst happen and significant numbers of staff are unable to attend the office, we are 100% confident that we will be able to maintain all the above processes with minimal disruption.
- We have identified key staff who will manage business critical activity in all areas. We will adapt to any given circumstances and flexibility exists for the key staff to either work from the office or from home with equal efficiency.
- We are confident that we would not lose any capability to support and pay our contractor employees. Our confidence is borne from the fact that all of our major softwares which are intrinsic to processes are web-based and can therefore be accessed from anywhere. Those that sit on our internal servers would be available via VPN connections. Our external IT administrators have provided sufficient hardware capacity for multiple staff to be accessing the servers via VPN simultaneously. Mobile equipment for staff remote working is already in place and tested.
- Our telephone system is also web-based and all key staff will have access to it via their mobile phones using a SWiP app. This means that inbound calls can be taken on staff mobiles wherever they are, without the caller even being aware that the call has been re-routed. Routing calls through our server also allows us to maintain our practice of recording all in and outbound calls.
"Please be assured that we are confident of maintaining ‘business as usual’ as best we can. We are not however complacent and will continue to monitor developments to ensure we can react quickly. Please feel free to contact us if you have any questions" - Nick Holmes, CEO
The Government has this week launched a review of the upcoming change to off-payroll (IR35) working rules. But the review has already been branded ‘limited’ and ‘meaningless’ by industry experts.
The review will gather evidence from contractors and large and medium-sized businesses and will determine if any further steps can be taken to ensure the ‘smooth implementation’ of the reforms.
Legislators will need to act quickly, however, because the reforms are still due to take effect in April 2020.
Brexit day is fast approaching and there is little certainty over how the negotiations will turn out.
Whatever happens, Brexit is likely to impact contractors in the UK. There may be some benefits in the short and long term, but many contractors are also likely to face some restrictions on their work.
In this blog post, we investigate the most likely Brexit outcomes and how they will affect contractors in the UK.