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Umbrella Windfalls

As the weeks go on here at UCHQ, the world is starting to return to normal for us, thankfully. We are all back in our socially distanced office (although we could just call that ‘the office’ – it wasn’t like we were that close to start with). The intern is back and busy googling ‘Chinese parasols’ and making TikTok videos, while the rest of us try and make sense of the world for our dear readers, those who use umbrella companies of the non-parasol variety.

The much-anticipated VAT cut for food, tourism and hospitality has finally dropped, meaning those in those industries are hopefully starting to see things picking up, especially the small business owners who have been hardest hit.

For those running small limited companies who are a PSC (Person of Significant Control) the news remains less good, with those who took dividend payments having already been well and truly shafted by the coronavirus job retention scheme and now with IR35 looming early next year (and many firms who hire contractors having already banned their use) there is scant little to look forward to, besides hoping there is no second wave and business can pick back up to pre-Covid times.

For those working under an umbrella company, things remain relatively uncertain. While the chancellor announced a bonus of £1000 to companies bringing employees back to work post-Covid, the bonus is meant to be for the employer, meaning that the people who run the  Umbrella Companies would be the ones to benefit from the windfall. However, that is not guaranteed as it would hardly be fair to those employed as an umbrella to miss out and not see any of that benefit. Umbrella Company groups however, are very much arguing that they deserve the windfall, thanks to covering the holiday pay of those employed by umbrellas who received furlough payments over the past few months.

Apparently, more on this will follow by the end of the month so we should have some clarity by then.

In the meantime, we hope you are all keeping well, work is returning to normal and your umbrellas remain intact in these turbulent times.

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