Category: PAYE Umbrella Company News

The new bills outlined in the Queen's Speech last week have positive and negative connotations for umbrella companies and professional contractors, it has been said.

Outlining the legislative timetable for the next session of parliament, the speech contained a series of measures that will directly and indirectly affect the contractor industry.

The Conservative-Liberal Democrat coalition government has promised reform of the tax and benefits system to make it fairer and simpler, with changes to national insurance also proposed.

More support will be given to those looking for work, the state pension age will be reviewed, barriers to flexible working will be removed and equal pay promoted, the Queen's Speech continued.

Commenting on the proposals, Contractor Calculator said: "The plans to create a fairer tax system will benefit limited company and umbrella contractors and may pave the way for the promised review and potential replacement of IR35."

However, the publication also warned that measures to scrap public sector schemes could cut opportunities for freelance contractors.

Posted by Sarah Kelly