Info

NI Rate Rises 2022

NI Rate increases will apply to all forms of earnings from 2022 with working people of pension age paying the new Social Care Levy from 2023. Most NI contribution rates will increase by 1.25 percentage points from April 2022 as predicted, then from 2023 the health and social care levy element will be separated out…
Read more

New Workers’ Watchdog

The new ‘Workers’ Watchdog’ will add further protections for temporary workers, including freelancers who now work under PAYE since the IR35 reform too effect. It will govern everything from securing the right of temporary workers to an accurate pay offer to providing protection against modern slavery.  While the new authority doesn’t specifically target umbrella companies, when an agency worker is considering taking a contract,…
Read more

The question people always ask….

…..when using an umbrella company is, ‘can I claim tax relief on my work-related expenses?’ In short, any employed worker is entitled to claim tax relief on their work-related expenses which of course includes umbrella company employees.  The longer story though, is that you practically need a degree in payroll management to get the tax and NI treatment of…
Read more

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…
Read more

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…
Read more

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…
Read more

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…
Read more

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…
Read more

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…
Read more

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…
Read more