Umbrella companies - Revision history

Designing Buildings at 08:40, 8 November 2020

2020-11-08T08:40:25Z

← Older revision		Revision as of 08:40, 8 November 2020
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	* TUPE Regulations.		* TUPE Regulations.

−	[[Category:~~Other_legislation~~]] [[Category:~~DCN_Legislation~~]] [[Category:~~Policy~~]] [[Category:DCN_Policy]] [[Category:Appointments]] [[Category:Contracts_/_payment]] [[Category:Procurement]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:DCN_Legislation]] [[Category:DCN_Policy]] [[Category:DCN_Regulation]] [[Category:Other_legislation]] [[Category:Policy]] [[Category:Appointments]] [[Category:Contracts_/_payment]] [[Category:Procurement]]

Editor at 14:05, 6 May 2020

2020-05-06T14:05:50Z

← Older revision		Revision as of 14:05, 6 May 2020
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−	[[File:Umberella-~~2013229 640~~.png]]	+	[[File:Umberella-2013229_640.png\|link=File:Umberella-2013229_640.png]]

	= Overview =		= Overview =
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	* Gangmasters and Labour Abuse Authority (GLAA).		* Gangmasters and Labour Abuse Authority (GLAA).
	* Intermediaries legislation.		* Intermediaries legislation.
		+	* IR35: essential steps for compliance.
	* PAYE.		* PAYE.
	* Payroll companies.		* Payroll companies.
Line 56:		Line 57:
	* TUPE Regulations.		* TUPE Regulations.

−	[[Category:Other_legislation]] [[Category:Policy]] [[Category:Appointments]] [[Category:Contracts_/_payment]] [[Category:Procurement]]	+	[[Category:Other_legislation]] [[Category:DCN_Legislation]] [[Category:Policy]] [[Category:DCN_Policy]] [[Category:Appointments]] [[Category:Contracts_/_payment]] [[Category:Procurement]]

Designing Buildings at 05:55, 14 September 2018

2018-09-14T05:55:31Z

← Older revision		Revision as of 05:55, 14 September 2018
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		+	[[File:Umberella-2013229 640.png]]
		+
	= Overview =		= Overview =

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	=== 2018 ===		=== 2018 ===

−	In September 2018, the union Unite called for government to crack down on abuses relating to umbrella companies and the [[Apprenticeships_levy\|apprenticeship levy]] which was introduced in 2017.	+	In September 2018, the union Unite called for the government to crack down on abuses relating to umbrella companies and the [[Apprenticeships_levy\|apprenticeship levy]] which was introduced in 2017. The levy applies to any company with a payroll of more than £3 million. Those companies must pay 0.5% of payroll costs in tax to help fund apprenticeships.

−	According to Unite, self-employed construction workers are ~~often finding that~~ the levy ~~is being~~ deducted from their pay by employment agencies and umbrella companies~~. The levy applies to any company with a payroll of over £3 million, who must pay 0.5% of payroll costs in tax which is used for training apprentices~~.	+	According to Unite, some self-employed construction workers are having the levy deducted from their pay by employment agencies and umbrella companies.

	Unite assistant general secretary Gail Cartmail said: “The most unscrupulous umbrella companies and agencies are deliberately undermining the apprentice levy by forcing workers to pay something which is supposed to be their responsibility.		Unite assistant general secretary Gail Cartmail said: “The most unscrupulous umbrella companies and agencies are deliberately undermining the apprentice levy by forcing workers to pay something which is supposed to be their responsibility.

Editor at 10:32, 12 September 2018

2018-09-12T10:32:37Z

← Older revision		Revision as of 10:32, 12 September 2018
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	=== 2018 ===		=== 2018 ===

−	In September 2018, the union Unite called for government to crack down on abuses relating to umbrella companies and the apprenticeship levy which was introduced in 2017.	+	In September 2018, the union Unite called for government to crack down on abuses relating to umbrella companies and the [[Apprenticeships_levy\|apprenticeship levy]] which was introduced in 2017.

	According to Unite, self-employed construction workers are often finding that the levy is being deducted from their pay by employment agencies and umbrella companies. The levy applies to any company with a payroll of over £3 million, who must pay 0.5% of payroll costs in tax which is used for training apprentices.		According to Unite, self-employed construction workers are often finding that the levy is being deducted from their pay by employment agencies and umbrella companies. The levy applies to any company with a payroll of over £3 million, who must pay 0.5% of payroll costs in tax which is used for training apprentices.

Editor at 10:32, 12 September 2018

2018-09-12T10:32:01Z

← Older revision		Revision as of 10:32, 12 September 2018
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		+	= Overview =
		+
	Umbrella companies are commonly used to employ contractors in the UK, sometimes via recruitment agencies.		Umbrella companies are commonly used to employ contractors in the UK, sometimes via recruitment agencies.

−	Effectively the contractor becomes an employee of the umbrella company and is assigned to work for construction clients. The umbrella company takes on the administrative burden of payrolls, taxation, timesheets, insurance, invoicing and so on. Where they are used, the recruitment agencies source the appropriate skills required by the construction client.	+	Effectively the contractor becomes an employee of the umbrella company and is assigned to work for construction clients. The umbrella company takes on the administrative burden of payrolls, taxation, timesheets, insurance, invoicing, and so on. Where they are used, the recruitment agencies source the appropriate skills required by the construction client.

	The use of umbrella companies can:		The use of umbrella companies can:
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	* Offer potential benefits in the expenses that contractors can claim (such as travel and accommodation), although these expenses are still subject to HMRC rules.		* Offer potential benefits in the expenses that contractors can claim (such as travel and accommodation), although these expenses are still subject to HMRC rules.

−	Umbrella companies can be seen as a means for helping contractors comply with intermediaries legislation (IR35), introduced in 2000, which restricts the ability of contractors to claim that they are self-employed (and so reduce their PAYE liabilities) when they are effectively employees. See ~~intermediaries~~ legislation for more information.	+	Umbrella companies can be seen as a means for helping contractors comply with intermediaries legislation (IR35), introduced in 2000, which restricts the ability of contractors to claim that they are self-employed (and so reduce their PAYE liabilities) when they are effectively employees. See Intermediaries legislation for more information.

	The use of umbrella companies has increased following the introduction of legislation in April 2014 that treats payroll companies as employers, requiring that they subject workers to tax and employee National Insurance Contributions (NICs) deductions at source and introducing a new liability to pay employer NICs. This change was introduced as the government believed that ‘employment intermediaries’, or ‘payroll companies’ were being used to enable workers to falsely claim that they were self-employed sub-contractors when in fact they were permanent, full-time employees. This allowed them to reduce their employment taxes and obligations. See payroll companies for more information.		The use of umbrella companies has increased following the introduction of legislation in April 2014 that treats payroll companies as employers, requiring that they subject workers to tax and employee National Insurance Contributions (NICs) deductions at source and introducing a new liability to pay employer NICs. This change was introduced as the government believed that ‘employment intermediaries’, or ‘payroll companies’ were being used to enable workers to falsely claim that they were self-employed sub-contractors when in fact they were permanent, full-time employees. This allowed them to reduce their employment taxes and obligations. See payroll companies for more information.
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	The move to use umbrella companies has been criticised as employees effectively pay both employee and employer NICs, may not be paid during holidays and may be paid largely through expenses, the eligibility of which is subject to scrutiny by HMRC.		The move to use umbrella companies has been criticised as employees effectively pay both employee and employer NICs, may not be paid during holidays and may be paid largely through expenses, the eligibility of which is subject to scrutiny by HMRC.

−	In the 2015 Budget, Chancellor George Osborne announced '...we will stop employment intermediaries exploiting the tax system to reduce their own costs by clamping down on the agencies and umbrella companies who abuse tax reliefs on travel and subsistence – while we protect those genuinely self-employed.' (~~Ref~~. [https://www.gov.uk/government/speeches/chancellor-george-osbornes-budget-2015-speech Chancellor George Osborne's Budget 2015 speech] 18 March 2015.)	+	= Updates =
		+
		+	=== 2015 ===
		+
		+	In the 2015 Budget, Chancellor George Osborne announced '...we will stop employment intermediaries exploiting the tax system to reduce their own costs by clamping down on the agencies and umbrella companies who abuse tax reliefs on travel and subsistence – while we protect those genuinely self-employed' (ref. [https://www.gov.uk/government/speeches/chancellor-george-osbornes-budget-2015-speech Chancellor George Osborne's Budget 2015 speech] 18 March 2015).

	From 6 April 2015, businesses providing two or more workers without operating PAYE must report their details, details of the position and of payments to HMRC.		From 6 April 2015, businesses providing two or more workers without operating PAYE must report their details, details of the position and of payments to HMRC.
		+
		+	=== 2016 ===

	In September 2016, it was reported that the Union of Construction, Allied Trades and Technicians (UCATT) was encouraging members to down tools to protest about umbrella companies, saying “...workers are sick and tired of paying umbrella companies and this campaign will show them that by undertaking a bit of collective action they can do something about it.”		In September 2016, it was reported that the Union of Construction, Allied Trades and Technicians (UCATT) was encouraging members to down tools to protest about umbrella companies, saying “...workers are sick and tired of paying umbrella companies and this campaign will show them that by undertaking a bit of collective action they can do something about it.”
		+
		+	=== 2018 ===
		+
		+	In September 2018, the union Unite called for government to crack down on abuses relating to umbrella companies and the apprenticeship levy which was introduced in 2017.
		+
		+	According to Unite, self-employed construction workers are often finding that the levy is being deducted from their pay by employment agencies and umbrella companies. The levy applies to any company with a payroll of over £3 million, who must pay 0.5% of payroll costs in tax which is used for training apprentices.
		+
		+	Unite assistant general secretary Gail Cartmail said: “The most unscrupulous umbrella companies and agencies are deliberately undermining the apprentice levy by forcing workers to pay something which is supposed to be their responsibility.
		+
		+	“The government must immediately look at this scam and introduce measures to prevent workers from being charged in this way. If the government fails to act, support and confidence in the apprenticeship levy will be further undermined.”

	= Find out more =		= Find out more =

Editor at 14:05, 3 August 2018

2018-08-03T14:05:17Z

← Older revision		Revision as of 14:05, 3 August 2018
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	* Construction industry scheme.		* Construction industry scheme.
		+	* Construction recruitment agency.
	* Gangmaster.		* Gangmaster.
	* Gangmasters and Labour Abuse Authority (GLAA).		* Gangmasters and Labour Abuse Authority (GLAA).

Editor at 15:09, 17 July 2018

2018-07-17T15:09:01Z

← Older revision		Revision as of 15:09, 17 July 2018
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	The move to use umbrella companies has been criticised as employees effectively pay both employee and employer NICs, may not be paid during holidays and may be paid largely through expenses, the eligibility of which is subject to scrutiny by HMRC.		The move to use umbrella companies has been criticised as employees effectively pay both employee and employer NICs, may not be paid during holidays and may be paid largely through expenses, the eligibility of which is subject to scrutiny by HMRC.

−	In the 2015 Budget, Chancellor George Osborne announced '...we will stop employment intermediaries exploiting the tax system to reduce their own costs by clamping down on the agencies and umbrella companies who abuse tax reliefs on travel and subsistence – while we protect those genuinely self-employed.' Ref [https://www.gov.uk/government/speeches/chancellor-george-osbornes-budget-2015-speech Chancellor George Osborne's Budget 2015 speech] 18 March 2015.	+	In the 2015 Budget, Chancellor George Osborne announced '...we will stop employment intermediaries exploiting the tax system to reduce their own costs by clamping down on the agencies and umbrella companies who abuse tax reliefs on travel and subsistence – while we protect those genuinely self-employed.' (Ref. [https://www.gov.uk/government/speeches/chancellor-george-osbornes-budget-2015-speech Chancellor George Osborne's Budget 2015 speech] 18 March 2015.)

	From 6 April 2015, businesses providing two or more workers without operating PAYE must report their details, details of the position and of payments to HMRC.		From 6 April 2015, businesses providing two or more workers without operating PAYE must report their details, details of the position and of payments to HMRC.

−	In September 2016, it was reported that the Union of Construction, Allied Trades and Technicians (UCATT) was encouraging members to down tools to protest about umbrella companies, saying ~~" “Workers~~ are sick and tired of paying umbrella companies and this campaign will show them that by undertaking a bit of collective action they can do something about it.”	+	In September 2016, it was reported that the Union of Construction, Allied Trades and Technicians (UCATT) was encouraging members to down tools to protest about umbrella companies, saying “...workers are sick and tired of paying umbrella companies and this campaign will show them that by undertaking a bit of collective action they can do something about it.”

	= Find out more =		= Find out more =
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	* Intermediaries legislation.		* Intermediaries legislation.
	* PAYE.		* PAYE.
−	* Payroll companies	+	* Payroll companies.
		+	* Right-to-work legislation and construction.
	* TUPE Regulations.		* TUPE Regulations.

	[[Category:Other_legislation]] [[Category:Policy]] [[Category:Appointments]] [[Category:Contracts_/_payment]] [[Category:Procurement]]		[[Category:Other_legislation]] [[Category:Policy]] [[Category:Appointments]] [[Category:Contracts_/_payment]] [[Category:Procurement]]

Designing Buildings at 13:33, 20 June 2018

2018-06-20T13:33:11Z

← Older revision		Revision as of 13:33, 20 June 2018
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	* Gangmaster.		* Gangmaster.
	* Gangmasters and Labour Abuse Authority (GLAA).		* Gangmasters and Labour Abuse Authority (GLAA).
		+	* Intermediaries legislation.
	* PAYE.		* PAYE.
	* Payroll companies		* Payroll companies
−	* ~~Intermediaries legislation~~.	+	* TUPE Regulations.

	[[Category:Other_legislation]] [[Category:Policy]] [[Category:Appointments]] [[Category:Contracts_/_payment]] [[Category:Procurement]]		[[Category:Other_legislation]] [[Category:Policy]] [[Category:Appointments]] [[Category:Contracts_/_payment]] [[Category:Procurement]]

Editor at 17:20, 19 July 2017

2017-07-19T17:20:24Z

← Older revision		Revision as of 17:20, 19 July 2017
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	* Construction industry scheme.		* Construction industry scheme.
	* Gangmaster.		* Gangmaster.
		+	* Gangmasters and Labour Abuse Authority (GLAA).
	* PAYE.		* PAYE.
	* Payroll companies		* Payroll companies

Designing Buildings at 09:08, 1 September 2016

2016-09-01T09:08:42Z

← Older revision		Revision as of 09:08, 1 September 2016
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	From 6 April 2015, businesses providing two or more workers without operating PAYE must report their details, details of the position and of payments to HMRC.		From 6 April 2015, businesses providing two or more workers without operating PAYE must report their details, details of the position and of payments to HMRC.
		+
		+	In September 2016, it was reported that the Union of Construction, Allied Trades and Technicians (UCATT) was encouraging members to down tools to protest about umbrella companies, saying " “Workers are sick and tired of paying umbrella companies and this campaign will show them that by undertaking a bit of collective action they can do something about it.”

	= Find out more =		= Find out more =