IR35 Off-payroll working

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There is an Elephant in the UK contracting room , Yes there is, As anonymous poet puts it,

There’s an elephant in the room.

It is large and squatting, so it is hard to get around it.

Yet we squeeze by with, “How are you?” and “I’m fine,” and a thousand other

forms of trivial chatter. We talk about the weather. We talk about work.

We talk about everything else, except the elephant in the room.

There’s an elephant in the room.

We all know it’s there. We are thinking about the elephant as we talk together.

It is constantly on our minds. For, you see, it is a very large elephant.

It has hurt us all.

But we don’t talk about the elephant.

This giant sleeping elephant is going to wakeup on 6th of April 2020 and contracting life is not going to stay the same anymore. You are right we are talking about IR35 off-payroll working regulations for private sector. It’s the biggest reform to private sector contracting that HMRC is introducing since the introduction of IR35 itself, yet there not much clarity. HMRC has completed its initial consultation barely two months ago on 29th May 2019. HMRCs The official response to this consultation was published on 11th July 2019. Here is the link to Official consultation response.

It does not mean that its arrival is a speculation but a clear certainty. HMRC has introduced off payroll working reform in Public sector in April 2017, this time round it’s a rollout to private sector. Going by what happened two years ago, it’s going to cause a major turmoil in contracting scenario. However there is a petition pending in front of UK parliament titled  “Repeal IR35 legislation in Public Sector and proposed Private Sector rollout.” This has got  24,000 signatures at the time of this article. If it crosses 100,000 signatories it will become eligible to be  debated in Parliament. If you wish to sign this petition you can do it here

Being one of the leading contracting paye umbrella solutions provider and experts in IR35 Ganumbra.com would like to you to keep updated on this topic. Over the coming months counting down to the introduction of IR35 Off payroll working regulations we will be publishing a series of Articles , Guides Tips and tricks on this topic.

We are also teaming up with Industry experts to formulate solutions that will help you navigate through these changes successfully. With minimum impact to your contracting career. More on this in coming articles.

We are focusing on micro articles that focus on a single topic at a time and are written in simple language. Following are some of the upcoming articles.

  1. Simplistic guide to IR35.

  2. IR35 and off-payroll working

  3. Major sections in IR35 and how they evaluate

  4. Tips and Tools to determine your status Under IR35

  5. How HMRC CEST tool determines IR35 status ?

  6. How to re-position your assignment from Inside IR35  (Contract for service) to out of IR35 (contract for services) with the client.

  7. Solutions that help legally class out of IR35 before April 2020 ?

  8. Personalized IR35 management tools

The Future of Public Contractors in respect to IR35

As a Public Contractor, you are probably wondering what is IR35? How will it affect my business ? HMRC has introduced changes to IR35 recently called “Off payroll working in public sector”, It is a new change legislation which seeks to put tax liability on public sector employers who employ through limited companies or meet the definition of self-employment.It ensures that disguised employment is identified where a contractual worker fills a permanent position in a company yet does not pay the statutory tax and National obligations as a permanent worker normally would. As per HMRC, only business owners exposed to actual risks warrant dividends and not employees who use a limited company. Continue reading “The Future of Public Contractors in respect to IR35”

What’s the best umbrella company for public sector contractors ?

Top 5 PAYE umbrella companies compared

As you were asking yourself which are the Best umbrella company for public sector contractors you came to the right place at the right time. In this post you will be able to find out every pros on the top umbrella companies. For starters what is umbrella company? An umbrella company is a company that plays a role like an employer to agency contractors which work under a fixed term assignment. Let’s start with taking look at some of the top umbrella companies in United Kingdom.

Top 1 Umbrella Company:-

We are going to start with Top 1 and currently the best Umbrella Company for public sector contracting is Ganumbra. They are in business since 2009. By joining you get your first year completely free of admin charges. This is the only one company that offers all of the benefits from the top 4 companies in one place.  Plus you get some unique benefits. Here is a quick list of what you get. Continue reading “What’s the best umbrella company for public sector contractors ?”

A Brief History of Umbrella Companies

Ganumbra

Money is one of the most powerful motivators of human beings. It has caused conflicts, separated homes, driven average people to phenomenal action and even pushed phenomenal people into desperate decisions.

This was the state of contracting at one point in the UK. Across the board, contracting companies were exploiting legal loopholes to reduce their tax payments and drive their profit margins up. Unwittingly, as companies drove their own liability down, they pushed that of their employees up and it became a matter of chance and time until they were caught by the system. Continue reading “A Brief History of Umbrella Companies”

Nine popular myths about Umbrella Companies

Exposing the facts!

It is highly suggested that you should know these nine popular myths of umbrella services. Question yourself, are you really in safe hands? Are you sure that the money comes into your account is 100% legal and you are not blacked out in any way. Always make sure that you keep an eye on latest HMRC updates so that you know exactly how it actually works and what is being done.

Facts umbrella company myths

Myth #1 – I can keep 90% of my pay by choosing a right umbrella company

Fact: No!

A compliant umbrella service provider is aligned with UK employment tax laws and are applied to all workers. As per the law, all contractors are subjected to national minimum wage policy. Compliant umbrella companies employ contractors and operate Pay As You Earn (PAYE) income tax and National insurance contributions. Hence it is not reasonable to believe that any compliant umbrella company would be promising their contractors for 80% – 90% take home. Continue reading “Nine popular myths about Umbrella Companies”

UMBRELLA OR LIMITED COMPANY… Which one suits you better?

Which one among Umbrella and Limited suits you better?

Its awesome that you are in the path of your new career. You might be unclear about the options to choose right now which could benefit you the most. This article would help you make you a better decision in terms of whether to choose an Umbrella services or a Limited company services. Let me take you through the basics of the options you have right now.

LTD-vs-Umbrella
Umbrella Company

As you might already know, Umbrella services helps you with end to end employment services. To get umbrella services, means you will be the full time employee of an umbrella company like Ganumbra, where you will be bound by the employment contract and everything which comes with it. Your timesheets, expense claims, invoices, salaries and taxes will be taken care by your umbrella company. You will be working for your client as a freelancer, contract job or a full time basis. But all your documents will be taken care by umbrella company on behalf of your work-employer. Umbrella company and your Work-employer will also have a mutual agreement and a contract which contains your type of work, pay scale and everything related to your work specifications. Your salary will be paid by your work-employer to your umbrella company. Umbrella company will pay you your salary after deducting the taxes leaving you free of hassles so that you can only concentrate on your work and perform better. You can read our detailed article on Umbrella company here. Continue reading “UMBRELLA OR LIMITED COMPANY… Which one suits you better?”

UMBRELLA COMPANY… a true career friend every contractor needs

When you start your career, it is very important for you to know about your taxes, expenses, what goes after it and how you need to sort it overall. For instance, if you are a freelancer or working for a someone, you must know how are you going to plan your time sheets, invoices, salaries and expenses along with submitting end to end tax related documents to HMRC.

You should also know about the structure of your taxes because handling salary and tax is the most important aspect of career irrespective of work type.  

Contractor expenses

That’s where an Umbrella company comes in. An Umbrella company is also known as PAYE (Pay As You Go) Umbrella company. Umbrella companies are the lifesavers of Freelancers.  You will already have much work to focus on and to have a complete knowledge of tax and expenses on top of it could be a big task to handle all by yourself. You should have dedicated HMRC experts to do such tasks for you and ease your way. While you focus on your career goals, umbrella companies can be your guardian and handle your time sheets, invoices, taxes, expense claims and mediator to your agency/client company. Continue reading “UMBRELLA COMPANY… a true career friend every contractor needs”