If you’ve had to adapt how you’re working due to COVID-19, it’s more than likely that you now find yourself working from home. This wasn’t such a big change to those who are already used to remote working, however for many of us this was, and still is, a complete new way of working.
As the world starts to adjust to what the ‘new normal’ will look like, our sector is no different. The Government is keen to get the economy restarted and we all know how important the flexible workforce is in rebuilding a strong economy. They have already announced their plans to bring furlough to a close as they are keen to get the economy restarted.
There has been further pressure on the Government to delay the private sector off-payroll working changes due to take effect in April 2021. The amendment followed a recent report by the House of Lords which found the off-payroll legislation to be ‘riddled with problems, unfairness, and unintended consequences’. Nevertheless the Government still believe that the changes are necessary and have rejected the amendment so the reforms are due to go ahead as planned in April.
When the Government introduced the Coronavirus Job Retention Scheme (CJRS) the country breathed a sigh of relief. However it was short lived for our umbrella employees because once we had all digested the guidance, it was clear that the Government hadn’t fully considered the way in which an umbrella employee works, and more specifically how the definition of regular salary should be interpreted for such an employee.
In this article we look at the challenges around furlough for umbrella employees. In particular the frustration and confusion created by differing opinions as to whether furlough pay is calculated on gross pay or basic pay.
In this article we take a look at the question that is proving so controversial: how do you calculate furlough pay for umbrella workers? But before we go into the legal technicalities we think it is important to say that this could be cleared up in a minute if the Government were to say; “for umbrella companies it works in this way.”
The start of the new tax year on 6 April 2020 has passed virtually unnoticed against the backdrop of current events. A further Budget is scheduled for November this year at which the Chancellor is likely to outline his plans to recoup the enormous cost to the country of the financial measures introduced to combat the effects of the COVID-19 virus. Have you considered your tax plan for the upcoming year?
A shock announcement last night saw Chief treasury secretary Steve Barclay announce that the change to the off-payroll working rules will be delayed for one year to 6th April 2021. This is part of additional support for businesses and individuals to deal with the economic impacts of Covid-19. The delay means that the different rules that exist for inside and outside the public sector will continue to apply until 6 April 2021.