A number of major legislative changes come in to force from the 1st April 2017. For those working in the public sector and paid through their own limited company, this may significantly impact their earnings with assignments now being deemed inside IR35.
The changes mean that for affected contractors, agencies will have no choice but to deduct tax and national insurance as if those individuals are employees before paying their limited company. There will therefore be no advantage to running their own company as the tax efficiencies will have been negated.
If affected contractors continue to use their limited company post-April, they will receive a lower rate of pay. This is because their agency will be required to adjust their rate to take employment deductions, such as Employers NI, in to consideration. There is also the risk that HMRC could challenge their previous earnings on this assignment once their end client has stated it is inside IR35.
The only way for affected contractors to maintain their current rate is to use an umbrella company solution. As one of the most longstanding and respected providers in the marketplace, our Flex umbrella solution ticks all the right boxes and provides an immediate solution for this predicament.
Flex provides all of the advantages of being an employee whilst enjoying the benefits of flexible working. A low cost, fully compliant and highly beneficial umbrella solution, suitable for anyone. Our highly skilled team provide unbeatable customer service you can rely on. It represents a highly attractive alternative to being paid on standard agency payroll or through your own company.
Contact us now for more information and a free no obligation discussion. If you are affected by these changes you need to be setup and ready before the changes take effect in April 2017.
Call on 0800 634 4848 today or visit www.fpsgroup.com/join-now.