EU Settlement Scheme: What does it mean for me?

As of 1^st January ^, this year, the United Kingdom has officially left the European Union. This means there are a lot of changes happening this year that could affect the wider economy but more importantly will affect individuals and their livelihoods. This is mostly because the freedom of movement rights for EU (European Union), EEA (European Economic Area) and Swiss nationals has ended. Therefore, the UK Government has put in place the EU Settlement Scheme, specifically to secure the right of residence in the UK for these nationals and their families. As a contractor working through Husp this could be something you need to look into in the next few months. To support you we have answered some of the questions you may have.  

Should I apply?

You can apply for the EU Settlement Scheme if you or a family member are an EU, EEA or Swiss citizen. You will also need to apply if you were born in the UK but are not a UK citizen. If you have children, you will need to apply for them separately.

Countries included in the EU are: Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden.

Non-EU countries included in the EEA are: Iceland, Liechtenstein and Norway.

Swiss citizens can also apply.

You do not need to apply if you have indefinite leave to enter or remain in the UK or Irish citizenship.

Am I eligible?

If you are not eligible based on EU, EEA or Swiss citizenship, you may still be able to apply if you have a familial relationship with an EU, EEA or Swiss citizen. We suggest looking at the government website and reading through their detailed clarification on who can apply.

What will I get?

As it stands, until 30^th June 2021 your rights as an EU, EEA or Swiss citizen do not change. But after the cutoff date those who have applied to the EU Settlement Scheme successfully will be able to continue living and working in the UK. You will be given either “settled status” or “pre-settled status”.

Settled status should be given to anyone who has had continuous residence in the UK for over 5 years. Settled status entitles you  to stay in the UK for as long as you like. You may also be able to apply for British citizenship if you are eligible.

Pre-settled status will be given to those who have not had 5 years of continuous residence. You must have been living in the UK from 31^st December 2020 and this will give you the right to remain for 5 more years. You can apply for settled status once you have reached 5 years but you must do this before your pre-settled status has expired. 

What do I need to apply?

In order to apply for the European Settlement Scheme, you will need proof of identity, meaning either a passport or a biometric residence permit/card. You will also be required to provide a digital photograph of your face.

The Home Office will also do a check to see if you have continuous residence. By providing your national insurance number there will be an automated check of your residence based on tax and benefit records.

If you are applying for settled status and there is not enough immediate evidence to support the fact that you have been in the UK for 5 or more years, the Home Office may request further proof.

When should I apply by?

The deadline to apply is the 30^th June 2021. But we would suggest having a look into it sooner rather than later. Follow the link below to the government website to get started.

Visit the government website here to find out more

Contracting 2021: Outlook

Mark Read, Business Consultant at Husp, talks about his views on contracting in 2021.

So here we are almost a month into 2021, and like every new year this one brings with it new challenges, new objectives and most importantly, new possibilities. Looking back, I think it’s safe to say that no one could have correctly predicted how 2020 would play out, either in the contracting market, or the wider world. At Husp we went into 2020 knowing it would be a challenging year for both ourselves and our contractor population, since it was our first year of operations and the upcoming IR35 legislation changes were inbound.

IR35

We can expect more talk around IR35. The IR35 legislation changes are still inbound. The changes were originally planned to be implemented in April last year, however due to the pandemic, the government announced an IR35 delay. That means we are a year further down the line and the legislation changes are still looming over us. Many of us are already fully aware of the changes and what they mean for us individually, but for those that are unsure the changes mean that the responsibility for determining the IR35 status of contractors is moving from the contractor to the end client. This could mean that if you are a contractor working through a personal service company (PSC) you may have to switch to using an Umbrella company. And if you are an agency recruiting into an end client, your resource pool could dramatically change depending on whether contractors wish to continue working the way they always have. Until these changes are in full force it is difficult to predict exactly what the split of roles will look like, but as the year progresses, we will get a clearer picture.

Covid-19

We should also address the elephant in the room, COVID 19. The Coronavirus Pandemic has had a huge impact on all our lives and going forward the end doesn’t seem to quite be in sight yet. This means that many of the adaptions we had to make to our working lives last year will have to be carried over into this one. However, this year we can look at the effects of the pandemic on contracting with a little less fear and anticipation. This is because last year many end clients worked closely with recruitment agencies to deliver working from home solutions. This was something that, for many of the projects working through Husp, I had never experienced before, but is proof that there is resilience in the contracting market and that the pandemic is not enough to grind it to a halt. As the year progresses and the restrictions finally ease, I think we can expect the market to go from strength to strength in 2021. 

Brexit

Another factor that could affect all our lives this year, is the reality of Brexit. As of January last year, the United Kingdom had officially left the European Union, and as of New Year’s Day this year the transition period had come to an end. The final agreement has varying effects on individuals depending on their personal circumstances but for contractors, the impact is still uncertain. If you are an EU national living in the UK the ending of Freedom of Movement could play a vital part in your contracting future, be sure you have the correct rights to work in place moving forward. There could be some positives to Brexit however, as in the past we have seen that larger businesses will turn to contractors over full time employees in times of recession. Changes in employment rights could also see smaller businesses finding it easier to employ contractors.    

Contracting 2021

In summary, I feel that 2021 should be more predictable than 2020, and much of the impacts and growth that we were denied last year due to the pandemic, we can expect to see this year. Umbrella companies are going to play an important role in contractor’s lives this year as more and more workers will need to change the way they are paid. It is imperative that as a contractor, you find an Umbrella company that works well with you. Ultimately it is a service, but it is also a relationship that could last for many years to come. As a recruiter, it is important that you know who to recommend to your workers and who can guarantee them great service. If you have any questions surrounding the topics mentioned and how Husp can help you in 2021, please get in touch, my colleagues and I will be more than happy to advise you where we can.     

Working From Home Top Tips

We once again find ourselves in national lockdown, and as the pandemic continues it becomes increasingly likely that working from home will be the new normal in 2021. Whilst working from home can be a dream for some people, for others it is a far more difficult reality. So, we thought that we’d put together a handy list of tips for working from home for contractors who are struggling to adapt to this new way of working.

Stick to a schedule

Set yourself a schedule that fits your working hours and stick to it. Often when we have no routine we can become demotivated and even the smallest of tasks can seem like a massive challenge. However, when we have a schedule set out for our day it can help simulate the feeling of being at work. Why not use the time you would normally commute to do something for yourself, like take a walk or do another form of exercise? Try to eat breakfast, lunch and dinner at the same times throughout the week. Finally, and most importantly, make sure you turn your computer off and wind down once the day is over – you don’t want your work spilling over into your personal time.

Have a dedicated workspace

If possible, make sure that you separate your workspace from any area of your home you usually relax in. Having a dedicated space helps you separate your work life from your personal life. This helps you switch off easier at the end of the day and switch on easier when you start work. Obviously this can be easier for some people due to differing sizes of homes but try your best to find a space away from where you normally relax to do your work. If possible, make sure you sit at a table or desk, not only because this will put you in a better mind set for the day, but also because working from a bed or a sofa for a prolonged amount of time can cause back problems.

Set rules with others

If you live in a busy house filled with family or friends it’s important that they know your boundaries during work hours. Make sure that other members of your household know that working from home doesn’t mean you’re able to pick up extra chores during the day. Whilst yes you can take in deliveries for them or even let service professionals into the property, your time at work is to be focused on the job you are paid for.

Take breaks seriously

When you are given a break from work make sure that you take that break in its entirety. Don’t cheat yourself out of valuable time, especially during your lunch break. Use the time to do something proactive for yourself. You could go for a short walk or make yourself a nice lunch. Having a break during the day is important to manage any feelings of stress you may be experiencing.

Dress for Work

Now we don’t mean put on a suit and tie every day! But it is good to make sure you get up and dressed for work. Whilst it might seem like a nice idea to work from your pajamas the novelty will very quickly wear off. This is another useful way to help your mind differentiate between work and relaxation. Getting up and dressed before work will help with motivating you for the day ahead.

Look After Yourself

The final and most important tip is to look after yourself. The circumstances we find ourselves in are not going to be ideal for most. It’s important to be as productive during the day as you can, but it is also important not to let stress and other anxieties take over. Think about yourself throughout the day and ask yourself what you can do to make things a little easier.

As it’s been said many times before, we are all in this together. We have our fingers crossed at Husp that we can do our bit to help you by making sure payday is as stress-free as possible. However, if you do have any questions or worries about your pay or would just like to chat to us about how we deal with working from home please feel free to give us a call on 0333 003 7831.

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Noone wants to think about getting older but pensions planning for the future is vital for making sure you’re in a good position when you’re ready to retire. We all want a retirement we can enjoy without financial worries.

One of the benefits of working through an umbrella company is access to workplace pensions. A workplace pension means you’ll contribute to your pension each month and so will your employer. You’ll also benefit from tax relief on these contributions.

As a contractor, you can work on many assignments through many different agencies. This can be tricky with you ending up with a number of different pensions pots. But working through an umbrella company means you’ll only have one employer, and therefore, you’ll only have one pension pot. This is one of several ways that working through an umbrella company can simplify your finances and make them more efficient and transparent.

Pensions can seem really confusing so we’ve covered some of the basics here.

Do you have to join?

In 2012 the UK Government introduced new legislation making it compulsory for employers to provide a workplace pension for their employees. The process started with the country’s largest employers in October 2012 and continued until 2018, when all UK employers were included.

The aim is that all employees should have access to a workplace pension scheme, and this means that we must automatically enrol all employees into a pension scheme.

As a Husp employee you’ll be automatically enrolled into a pension scheme, if you’re:

• aged between 22 and State Pension Age;
• earning over £10,000 a year (£833 a month/£192 a week) ;
• working, or ordinarily working, in the UK;

How much will you have to save?

You have to save a minimum of 8% of your qualifying earnings into your pension pot each month. This includes three elements:

• The employer contribution which is covered by the employment costs the umbrella company pay on your behalf (3%)
• your personal contribution (4%)
• tax relief (1%)

Can you opt out?

Whilst workplace pensions are one of the benefits of working through an umbrella company, it’s possible that the scheme your umbrella company is offering isn’t right for you. If this is the case, you should feel free to make your own arrangements. Your employer has a legal obligation to enrol all qualifying employees, so once you meet the criteria, they will have to enrol you, but you can opt out within 30 days of enrolment.

If you do opt out it’s really important you make sure you have an alternative pension plan in place. The earlier you start saving, the more time you have to build up a good income for your later years.

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We are really pleased to be able to announce that we have now been fully accredited by the Freelancer and Contractor Services Association (FCSA) for our umbrella services.

We have always kept the needs of our contractors front of mind in designing and operating our umbrella services, as well as ensuring that we are operating in a totally compliant and ethical way. This accreditation is a real endorsement of the work we have done since our launch at the beginning of the year.

Being FCSA accredited gives all of our contractors, their agencies and end clients the reassurance they need that we are handling everything effectively for them – as we have always committed to doing. So, they can go on doing what’s most important… focusing on their contract.

I’d like to say a huge congratulations to our team here who have all worked incredibly hard to achieve this and we look forward to working with the FCSA for many years to come.

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Contracting in 2020

As we move into the new year, we know that the contracting market is facing a significant upheaval in 2020 with the changes to the IR35 legislation which come into effect from April. The legislation is designed to determine if contractors are genuinely self-employed or acting more like an employee and ensure that they are paying the appropriate tax and national insurance based on the way they are working. There is, unsurprisingly, uncertainty about how the changes will land and what the ‘new normal’ of contracting will look like once the dust settles.

What are the IR35 changes?

The change itself is relatively simple – the responsibility for determining the IR35 status of contractors working through personal services companies (PSCs) for tax purposes is moving from the contractor to the end client. It sounds simple, but it is likely to have far reaching consequences.

What does it mean for end clients?

Many of the businesses who use large numbers contractors are facing a significant increase in administration costs as they will need to carry out an individual assessment for every contracting role they recruit for, to assess whether it is within or outside of IR35.

The alternatives are to stop using contractors altogether, to only work with contractors who are employed via an umbrella company where IR35 doesn’t apply or to employ people directly through fixed-term contracts.

What does this mean for the market?

The expectation in the market is that many more roles will be deemed as inside IR35 than they are currently, as it is anticipated that end clients will see this as the lower risk outcome so will err on the side of caution when making their assessments.

As you would expect, contractors are having to make decisions about whether they wish to continue working in the same way with a reduced number of roles available, if they are happy to work in roles that are inside IR35 or if they are going to switch to an umbrella arrangement as the administrative burden of running a PSC starts to outweigh the benefits.

How will the market develop over the rest of the year?

The reality is that we don’t yet know what the split of roles will look like after the changes come into effect, and many businesses have yet to make decisions about the types of contractor they will engage with going forward.

It’s important to remember that decisions made now may not mean they won’t change in the future. If businesses find they are no longer able to attract the quality, experienced and skilled contractors they rely on, they may need to reassess how they operate going forward to make sure they continue to attract the right talent.

Umbrella companies are likely to increase in prominence, providing the reassurance to both contractor and end client that all legal obligations are being met compliantly and removing the administrative burdens from both sides. For more specialist contractors, the market is likely to become a more flexible place to work, with more emphasis on outcomes-based contracts where the focus in on output rather than process. Increased flexibility of location and time would move the market much more towards a freelance model.

As we near the end of the year, we will start to see the new status quo emerging. The fundamental requirement for a flexible workforce, however, remains and the market is expected to continue to go from strength to strength as the changes embed and all those impacted adjust to the new landscape.

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The future of flexibility

There has been a huge amount of speculation in the market about what the future of flexibility and particularly the contractor workforce will look like following the changes to the off-payroll working regulations (IR35) in April 2020. Whilst these are bound to have an impact on the way companies engage with contractors, the need for a flexible workforce will remain.

Flexible working has two widely used meanings: flexibility in the way you carry out your job, for example flexible hours or locations and flexibility in terms of additional temporary resource. Both of these types of flexibility are on the rise.

Flexibility of operating whether that is through different hours or working in different locations is becoming an expectation for job seekers. The standard 9-5 hours in the same office everyday is less and less likely to be the experience workers have having. However, there are operational challenges to offering this type of flexibility and technology is core to meeting the increasing expectations from workers that they can choose both when and where they work.

When it comes to additional temporary resources, companies will always have projects and incidents which mean that they can’t manage their workload for a certain period of time using just their permanent headcount. Therefore, there is always going to be a market for contractor resource to bring their experience and skills into the company for the duration of the need. This market has been growing in size with many people choosing their contracting career to give them a wider choice of work, more opportunity to take breaks in their career to follow other interests and a greater experience of both types of work and different companies.

Umbrella companies are likely to become more and more important in meeting contractor needs. And the ability to provide continuous employment across changing contracts means that people choosing this type of work don’t need to miss out on all of the benefits of a permanent role while still maintaining the flexibility of contracting.

I believe the future of flexibility is bright, and whilst the landscape may shift and change over the coming year, there is increasing demand and opportunity on the horizon.

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