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covid-economy

The impact of Covid-19 on UK contractors – how umbrella companies can help

Coronavirus has had a devastating impact on the United Kingdom. Not just in a public health sense, but in an economical one, too. 

Persistent lockdowns across the country over the space of a year has seen the economy take a sizable hit, and seen numerous businesses close their doors permanently.

The squeeze has been particularly felt by the UK’s contractors; many of whom saw little-to-no help from the government furlough scheme, weren’t eligible for bounce-back loans and more.

Various sectors have coped in different ways, though. A lot of construction projects, for instance, got the green light in 2020, with labourers and construction contractors able to continue working – albeit with heavy restrictions.

Others haven’t been so lucky – contractors who work in the retail space, for instance, have found the last year especially hard.

With the vaccination programme gathering pace, though, there’s hope that 2021 will look a lot brighter for contractors.

What does the future hold for contractors post-pandemic?

Though mass-vaccinations and the promise of lockdown lifting as a result bring hope, there are things contractors can be doing right now to secure their immediate and long-term futures.

For instance, one of the worst outcomes for contractors during the pandemic has been the hit taken to their pensions.

Research has been published from Unbiased suggesting that the self-employed haven’t been able to contribute as much to their pots over the last year, and that more than half don’t have a pension at all.

Similarly, those that haven’t had any financial assistance from the government or their bank has forced a lot of contractors to dip into their savings to survive.

And, as the UK does eventually begin to open up again, there’s no guarantee of work. A lot of sectors have been hit especially hard in our service-led economy, and it’ll take time for a lot of businesses to be in a position to provide contract work again.

And, while all this is going on, IR35 reforms are finally set to be introduced on 6 April 2021. What can contractors be doing now to stabilise their immediate futures?

Greatpay is here to help contractors from all backgrounds

We work with all sorts of contractors at Greatpay, with our team of experts committed to providing the best advice possible to help make contractors’ lives easier.

For instance, we believe that partnering with the right umbrella company is one of the best ways to begin to navigate a lot of the problems we’ve listed here.

The right umbrella company could help you better manage your finances, get your pension payments back on track, help you potentially discover new clients through the supply chain, and generally offer a greater level of support in your journey as a contractor.

We can also put you in touch with IR35 experts if you’re still unsure of what the legislation means and are worried about reaching compliance.

2020 and 2021 have, so far, been incredibly tough for contractors. The Greatpay team is here to take those troubles from your shoulders, and point you in the right direction to getting you back on your feet as a contractor.

Find out more about how Greatpay can help you and the services our expert team can provide by contacting us today!   

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