Freelancers face potentially devastating tax bills due to complex “Managed Service Company” rules HMRC has issued a stark warning to freelancers, contractors, and consultants about the dangers of “Managed Service Companies” (MSCs). These complex tax arrangements could leave unsuspecting independent workers facing unexpected tax bills reaching tens of thousands of pounds. MSCs, often promoted by […]

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The recent hike in employers’ national insurance tax has sent ripples through the contracting world, leaving many unsure of whether to celebrate or brace for impact. While some contractors may find themselves with unexpected benefits, others could be facing a hefty financial blow. But the implications go even deeper than individual wallets. This tax change […]

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The UK government has announced a major shake-up of the temporary labour market, aiming to tackle widespread tax avoidance within the umbrella company sector and improve conditions for workers. Legislation will be introduced that will shift the responsibility for Pay As You Earn (PAYE) from the umbrella company to the recruitment agency supplying the worker. […]

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HMRC recently added four more tax avoidance schemes to its list of known promoters. While this should be positive news, it raises concerns about the effectiveness of HMRC’s anti-avoidance strategy. Qdos, a tax compliance expert, points out that despite identifying a growing number of schemes, thousands of contractors and freelancers remain at risk of non-compliance. […]

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Jeremy Vine, the BBC presenter, is fighting a legal battle with HMRC over alleged unpaid taxes, potentially impacting the classification of freelance work under IR35 rules. Legal and IR35 experts are speaking out about HMRC’s track record of stringing people along through decades-long court battles of uncertainty and great cost to the contractor and taxpayers […]

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What Contractors and Freelancers Need to Know The future of fixed-term contracts under a Labour government would likely be influenced by the party’s historical stance on workers’ rights and its current policy proposals. Labour typically prioritises strengthening workers’ protections and ensuring fair employment practices. Here are some potential changes and initiatives that could be expected: […]

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The Conservative Party wants to raise £6bn a year by clamping down on tax avoidance and evasion with the proceeds of the tax revenue received to go towards childcare benefits and to help pay for the proposal to introduce national service for 18-year-olds and to keep state pensions outside the threshold for income tax. Some […]

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Automating background checks to weed out tax-avoiding umbrella companies could save HMRC time and resources compared to manual investigations. It could also save thousands of freelancers financial heartbreak. Here we share 25 reasons why the latest AI should be seriously considered a solution to a decades-old problem. By using artificial intelligence (AI) for background checks […]

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After reading this article, umbrella company contractors should have a clearer idea of what is required of any umbrella company, their recruitment agency and whether they may have been swindled A survey that included 520 freelancers and contractors has uncovered alarming levels of non-compliance and lack of worker protections within the umbrella industry, the common […]

The post New stats: Umbrella contractors are getting swindled on pay, rights and pensions and the government has known it for years appeared first on Freelance Informer.