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New to Umbrella Companies?

Umbrella companies have two main functions. 1. They reduce the administrative and regulatory burden on hirers, and if using an umbrella company gives access to genuinely better pay rates, therein is an advantage. 2. They take the place in the supply chain of a ltd company operating under IR35, which means they facilitate anyone who…
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The first three steps towards working under PAYE

If finding work as a limited company contractor has become harder and working on employed contracts seems to be ‘on the cards’ (please excuse the pun), there are three things you should do to make sure that you pay no more than the right amount of tax under PAYE, particularly if you will be employed…
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Practical Issues – IR35 in 2021

Following on from the forthcoming changes to IR35 legislation, the main concerns of anyone who is converting from working as a limited company contractor to a contract that is paid under PAYE in 2021, are going to be taxes, travel expenses and pay rates.  Let’s start with travel expenses….Currently your accountant offsets some of your…
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IR35 Flowchart

HMRC recently published a flowchart to assist limited company contractors to better understand the off-payroll working rules. You can see a copy of the flowchart here… Further information and leaflets can also be found on our IR35 page, please click here Contact CWC Solutions for free tailored guidance on what to do if a client…
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Umbrella Companies – Fact or Fiction

Umbrella company employees pay employer NI contributions. Fiction – Umbrella companies took the amount offered by agencies and split this between the worker’s payment, the umbrella company costs and it’s margin. Many temp agencies portrayed the umbrella company rate as being the workers’ pay rate, but this was a misrepresentation and workers often failed to…
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Umbrella Companies and Pay Rates

Many people who are paid as an employee of an umbrella company can’t understand why the employer NI contribution and other employer costs are apparently deducted from what they take to be their pay rate. Actually, the rate offered by an agency to freelancers or umbrella company employees, has always been an assignment rate, made…
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Thinking of Closing Your Company?

The off-payroll working rules were designed to ensure that any contractor who is working like an employee pays employment taxes, but hirers are tending to adopt internal policies on hiring limited company contractors rather than applying those rules. High level decisions are apparently being made, which is resulting in the cessation of the use of…
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CEST TOOL – GETTING IT RIGHT

HMRC issues the following warning, so it’s imperative that you answer the questions accurately as possible when seeking an opinion on your tax status. Disclaimer HMRC will stand by the result you get from this tool. Warning: This would not be the case if the information you have provided was checked and found to be…
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Agencies and the Link to IR35

Where an agency or person is involved in the supply of a worker to an end client, contracts are likely to be offered work on a PAYE basis next year, basically because agencies enter into engagements with clients which state that workers will work under the control of the client. Agencies are therefore required to…
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IR35, Agency Workers and the Twist

Contractors are rightly concerned about what happens when agencies refuse to pay their limited companies next year; will they have to close their companies, and then will they remain at risk of HMRC retrospectively assessing their company income under IR35 legislation? For how long? This is an issue, but there is a twist in this…
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