The Ongoing Issue of Late Payment

Late Payment

Although (like everything else) it might have been a bit overshadowed by Brexit, there was good news for contractors and freelancers buried in the Chancellor’s Spring Statement last month – a crackdown on late payments. It’s a scenario that will be familiar to almost every contractor and freelancer; the tiresome and often worrying time spent waiting and chasing for payment of invoices that are well overdue.

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What if I get injured at work?

Injured

For any contractor who has previously been in traditional employment, you probably didn’t think that much about what would happen if you got injured at work. Or, if you did, you’d have found that your employer would have significant responsibilities towards you in the event of an accident in the workplace. As a bare minimum employees are guaranteed £92.05 per week Statutory Sick Pay, payable for up to 28 weeks, if they are too ill to work. Many employment contracts offer enhanced sickness benefits on top of this. And, of course, while at work, your employer is liable for your safety, so if they have been negligent you may be able to make a claim for personal injury compensation against them. Industrial Injuries Disablement Benefit also exists to support those employees who become ill or are disabled because of an accident or disease at work.

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Statement of Work Contracts – What You Need to Know

Statement of Work

The issue of Statement of Work (SoW) contracts, and the rise in requests that many recruiters are seeing from their clients, is one that has been a point of discussion for some time.

In fact, at our recent Industry Insight event, the Q&A section was dominated by questions to the panel around SoW. You can read more about the event as a whole here, but this blog will focus purely on SoW contracts – what are they, do they work, and what you should say to a contractor who wants to go down that route?

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Fees in the Mortgage Process

Mortgage

We’ve already spoken about the steps self-employed workers should take in order to make the process of getting a mortgage simpler and easier. But it may well be the case that you’re so focused on getting over the first hurdle that you forget what’s just behind it.

That’s why we’ve teamed up with the good people at CMME again – this time to take a look at the fees involved in the mortgage process. Whether you’re a first time buyer with no idea of what’s ahead or a seasoned pro getting ready for another round, this post will serve as a good indicator of what to expect.

Before we begin it’s worth noting that it is possible to add some of these costs to your mortgage, but many individuals choose to pay them upfront. Regardless of which scenario works best for you, here are the fees you can expect:

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Mortgage Tips for the Self-Employed

Mortgage

Read on below for a guest post from our good friends at contractor mortgage specialists CMME:

Becoming self-employed isn’t always for everyone. It’s a decision that can have consequences. You may feel alone in your journey when it comes to financial advice, especially when your high street bank doesn’t understand the way in which you work when applying for a mortgage – something that can hinder your opportunity.

It’s a common myth that the self-employed will be declined a mortgage or would need to have been self-employed for 2 to 3 years. This isn’t necessarily true and, with support and guidance from the right specialist mortgage broker, you could get a mortgage that reflects your true earnings.

Whether you’re a first-time buyer or a professional looking to re-mortgage, CMME have created this helpful guide outlining everything self-employed people need to know about getting a mortgage.

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Spring Statement 2019 – The Kingsbridge View

Spring Statement 2019

In recent years, the Spring Statement and Autumn Budget have delivered a series of blows to the contracting community. From IR35 reform to the failed attempt to raise NIC payments, the Chancellor’s announcements have had many self-employed workers hiding behind the sofa.

It was with some relief, then, that other more pressing issues (see: Brexit) meant that this year’s Spring Statement seemed very likely to be a quiet one. As expected, that was the case.

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The Duty of Care

Duty of Care

It is generally well understood that contractors owe a duty of care to the clients they are working for. What sometimes gets lost, however, is the duty of care that recruiters owe to the contractors they place.

The role of the modern recruiter extends well beyond simply finding the right placement for the contractors they look after. To summarise in a sentence: the role of consultancies is to make sure that their contractors are well-informed.

Whether it’s advice and guidance on IR35 legislation or a helping hand with contract management, the role of today’s recruiter is multi-faceted. Firstly, the recruiter must ensure that the contractor holds sufficient levels of insurance, in line with their contract and the requirements of their job role.

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IR35 reforms for private sector – consultation released

IR35

Businesses to be responsible for sorting out status disputes, notes Larsen Howie‘s new Head of Tax Andy Vessey

A little quicker off the mark than many had anticipated, HMRC have published the consultation document ‘Off-payroll working rules from April 2020‘ which will run for 85 days, closing on 28th May 2019.

Ostensibly, the off-payroll rules will mirror those currently in place for the public sector but with some tweaks. This is because the government acknowledges that the needs of private sector organisations are different to those in the public sector, and that the range of activities carried out are much more diverse.

The extension of the existing rules to cover independent contractor usage is due to begin on 6th April 2020, with the consultation making it clear that the public sector rules will serve as the starting point when the private sector rollout begins. This consultation period is intended to gather comments from stakeholders on the proposals put forward by HMRC. Here’s what you need to know.

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Self-employed make up almost 15% of UK workforce, new data shows

Self Employed

With talk of Brexit and IR35 reform dominating contracting and freelancing circles for some time now, the continued growth and success of the self-employed community is sometimes left behind.

But despite a backdrop of economic uncertainty and the unsettling influence of looming legislative reform that community has continued to thrive. Recently released data from the Office for National Statistics shows that the number of self-employed people in the UK rose by an impressive 63,000 to 4.84 million in the last quarter of 2018.

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EU settled status for contractors and freelancers

Settled Status

Amidst a still unclear Brexit picture, recently there was a piece of good news for EU citizens living in the UK. Theresa May announced that the Government would be abolishing the £65 fee for individuals to apply for settled status in the UK after Brexit. This is particularly welcome news for contractors and freelancers, as many employers were offering to cover the cost for their workers, whereas the self-employed would have to find the money from their own pockets. This blog takes a closer look at the process of applying for settled status if you are a contractor or freelancer. As we’ve seen from the past month or two, almost everything about Brexit is still up for negotiation and subject to change, but here is the advice as it currently stands.

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