HMRC have launched a new consultation that could result in major changes on the horizon for PAYE. The PAYE business processes were introduced in 1944 and have not changed in the following 66 years.

From 6th April 2010, new PAYE regulations mean that HMRC will accept the use of electronic P60s (also known as eP60s). This is great news for large employers, such as umbrella companies.

At the Royal Court of Justice last month, the retrospective effect of BN66 was last judged as lawful. The rule was being tested with regards to whether or not it breached an individual’s human rights.

An umbrella company is the ideal solution for contractors who do not wish to set up their own limited company or become self employed. For contractors seeking a way of working which allows them to work on several contracts without administration, then an umbrella company is the answer.