Budget announcement directly affecting Recruitment industry
In Wednesdays announcement Chancellor Kwasi Kwarteng made commitments to cut back unnecessary and excessive regulation as part of their growth plan.
This included :
simplifying tax,
Abolishing the Office of Tax Simplification
Improving the UK financial environment for investors, businesses and others.which were at the heart of The Growth Plan revealed by Kwarteng.
“Economic growth is the government’s central mission,” the Growth Plan document says. “To do this, the government must cut taxes, streamline the public sector and liberate the private sector by making Britain the place for investment, skilled employment, infrastructure, home ownership and enterprise.”
The changes to the fiercely debated IR35 regulations outlined in the Growth Plan say the Plan “sets out first steps in taking complexity out of the tax system. The 2017 and 2021 reforms to the off-payroll working rules… will be repealed from 6 April 2023. From this date, workers providing their services via an intermediary will once again be responsible for determining their employment status and paying the appropriate amount of tax and [National Insurance Contributions]”.
Other highlights with potential impact for recruiters include:
- Annual investment allowance, the amount companies can invest tax free, remains at £1m indefinitely
- Regulations change so pension funds can increase UK investments
- New and start-up companies able to raise up to £250k under a scheme giving tax relief to investors
- Share options for employees doubled from £30k to £60k.
Day to remember
What a spectacle and outpouring of love for an amazing woman!
It was simply breathtaking to watch the Queens funeral. A moment in history we shall never forget.
Thank you Liz
Really interesting (and worrying!) news from the Recruiter. As if we havent got enough on our plate this year
Recent fraud targeted at the recruitment sector :: The REC
Fraud is an issue which affects individuals and business and organisations in many different sectors. Recruiters and their contractors are not immune to fraudulent activities.
We have been made aware of specific targeted activity which is targeted at umbrella companies in an effort to obtain monies from recruiters and contractors.
This involves the ‘cloning’ of umbrella companies, with fraudulent companies taking on similar names to those of genuine umbrella companies and seeking to attract business from recruiters and contractors.
We would urge recruiters to be exercise caution when working with umbrella companies and to take steps to verify that the company is genuine. In particular if you are contacted by an umbrella company that you work with regularly or have worked with before, asking you to update the payment details that you have for them, do ensure that this is a genuine request. You can do this by contacting the umbrella company through your usual contact channels and if in doubt using virtual face communications can also help you to confirm that you are dealing with the correct company.
When contacted by new umbrella companies, if they are a member of FCSA and/or Professional Passport, you will be able to check at least whether the registered company number that they aligns with their company name is the same as that on the FCSA Directory of Members • FCSA Accreditation or Professional Passport member lists, in addition to your other due diligence checks.
