Webinar: what you should know about IR35, tax, and Umbrella regulations

Recently, our Director of Accounting Services, Chris James, joined IPSE’s Director of Policy, Andy Chamberlain, to discuss topics such as the key tax changes, IR35 developments and government consultations that could impact the self-employed this year and further into the future.

During the webinar, which attracted 650 viewers, Chris and Andy discussed the impact new taxes will have on those working via an umbrella company and the measures they are calling for.

This news item first appeared as a blog on the IPSE website – please view the full details here.

The key topics that were discussed were:

The Health and Social Care Levy

The implementation of a new 1.25% levy on employees and employers liable for Class 1 NICs and self-employed Class 4 NICs individuals will go into affect April 2022.
Likewise, a 1.25% increase has been announced on the dividend tax rate for April 2023 with the first £2,000 of dividend income set to remain free. This is to help cover the cost of the pandemic.

IR35

There was a review of recent high-profile public sector IR35 cases whereby contractors were wrongly classified outside of IR35. This just demonstrates that the CEST tool is not adequate in determining IR35 status and causing confusion within the government.

However, outside IR35 assignments seem to be on the rise, with end-clients who had previously introduced blanket bans or assessments, now changing course and reversing those decisions.

Calls for Evidence

The government is scrutinising the umbrella company market and is encouraging participants to respond to a consultation. This can be done directly or through IPSE themselves.

As a member of IPSE, you can watch the full recording of the webinar and any of their other webinars by accessing their webinar library here. Workwell is a proud partner of IPSE and can answer your tax queries and give you the advice you need – just get in touch on 01923 257257.