Tax hike could impact umbrella and PAYE agency worker costs, warns APSCo

(2 minutes to read)

APSCo: ‘With 1.25% payable by both worker and employer – 2.5% in total – this will only serve to drive umbrella and PAYE agency worker costs up’.

With the recent announcement concerning NICs and dividend tax increases, the APSCo warns this could have an impact on contract, umbrella and PAYE agency costs.

Responding to the news that tax hikes are to be introduced in order to cover NHS and social care reforms, Tania Bowers, Legal Counsel and Head of Public Policy at APSCo said:

“While we recognise the need for social care and NHS integration and reform, this manifesto breach is a concern in more ways than one. With 1.25% payable by both worker and employer – 2.5% in total – this will only serve to drive umbrella and PAYE agency worker costs up, which will exacerbate the on-going shortage of workers that UK employers are currently struggling through.”

Considering becoming an employee of Contractor Umbrella?

Give us a call on 01206 591 000 or email jaime.thorpe@contractorumbrella.com.

Email Jaime

Bowers added, “The increase in dividend tax will only add more pressure to already stretched businesses. While the worst of the pandemic may appear to be over, many organisations are still trying to find their way out of a deep financial hole that they’ve been stuck in for the last 18 months. And with skills shortages impacting the bounce back for firms, adding an extra financial burden too soon could have a detrimental impact on the recovery of a significant proportion of UK businesses.

“While we do accept that the financial aid supplied during the pandemic will need to be recovered at some point, the timing of this is arguably too soon and we question the permanent introduction of a new tax.”

To find out more about contracting please contact Mahli on 01206 591 000 or email mahli.tugby@contractorumbrella.com.

You may also like to read

Tax hike could cause unemployment to rise by 50,000

An analysis looking into the potential damage caused by the 1.25% increase in NICs has indicated that as many as ...

Read More

Schools should furlough supply teachers, suggests DfE

Updated guidance from the Department for Education (DfE) has said that schools should pay agency staff on live assignments at ...

Read More

Contractor Umbrella pass APSCo Intermediary Compliance Review

Contractor Umbrella Compliance Audit Auditors have undertaken a very thorough audit of Contractor Umbrella which aims to provide you the contractor, ...

Read More

Still thinking about if you should join Dolan Accountancy?

Give us a call on 01206 591 000 or email Mahli.tugby@contractorumbrella.com

BLACK FRIDAY DEAL

One week margin free when you sign up with Contractor Umbrella today!
Hurry - Deal ends at midnight tonight.
CLAIM NOW
      Terms and Conditions: 
1 week margin free or £25 reduction on monthly margin. Online registration form must be completed by midnight 6th December 2019. Payment must be processed and margin redeemed by 31st December 2019.
      
close-link

dav1