News

Some will be pleased at the tax cuts and financial incentives laid out by the Chancellor in his mini budget today 23rd September. Others may worry about the cost to the economy, mirroring the debate points during the Conservative Party leadership battle. Regardless, our Prime Ministers promises in relation to IR35 are now live.

Many employers, including recruitment businesses, are taking steps to help and support staff with the rising cost of living, whether temporary help (e.g. a one off payment) or permanent help (e.g. a salary increase). However, should these kinds of enhancement be provided to agency workers and contractors?

The funeral of Her Majesty Queen Elizabeth the Second will take place on Monday 19th September 2022, and the day has been declared a bank holiday. 

The Government have stated that businesses are not obliged to close. However, it is expected that, unless there is a need to remain open, most will do so as a mark of respect and to provide staff the opportunity to pay their respects…

As a supply agency, have you switched, or are you considering switching, from supplying personal service company (PSC) contractors because of IR35 or client requirements? If so, come to our seminar on 6th October 2022 to gain insight. Switch to your own payroll (PAYE) or work with umbrella companies (also offering PAYE payroll), or adopt both. Either way there are regulations and worker rights to be considered

Press reports last weekend suggested that if Liz Truss becomes the next Prime Minister, she will order a review of the current ‘IR35’ rules. This may be welcomed by many in recruitment as a means of addressing many of the well documented legal and practical problems, but could a review lead to an additional burden being placed on recruiters and hirers?

With industrial action hitting the headlines once more, whether it be rail workers, postal workers, or, potentially nurses, the repeal of Regulation 7 of the Conduct of Employment Agencies and Employment Businesses regulations 2003 (‘Conduct Regs’), means that agencies can now supply agency workers to replace workers involved in industrial action. Does this now mean a free for all for employment businesses, or are there other factors which need consideration? 

The healthcare agency K5K Limited is facing a tax bill of more than a quarter of million pounds as a result of engaging agency workers as sole traders.

With so many questions currently arising over holidays and holiday pay, agency worker rights, employment/worker status and recruitment process, it is a good time for a refresher.  This seminar on 6th October 2022 in London will focus on the key rules that apply to the supply of agency workers and how to navigate them to achieve the best outcomes.

In an important case regarding holiday pay, the Supreme Court has confirmed that workers employed for a full leave year are entitled to receive 5.6 weeks paid holiday, irrespective of the number of weeks that they actually work during the leave year and even if that means they are entitled to proportionately more holiday than full-time colleagues.

A recent decision by the tax tribunal serves as a timely reminder why both contractors and agencies need to be aware and cautious of potential liability under the Managed Service Company rules, specifically that being complicit in the tax arrangements is not a requirement for debts to be transferred to other parties involved in the supply chain.

Since the introduction of IR35 in 2000 the accountancy/umbrella/contractor support sector has grown at breakneck pace, so much so that HMRC’s focus turned to dealing with various non PSC models, all of which had one thing in common – tax avoidance, namely schemes to encourage payment of less PAYE and NICs.

It has been reported that an umbrella company has been ordered to pay back incorrectly claimed tax relief of some £11m to HMRC. 

In 2020 the Department of Business Enterprise and Industry Skills (BEIS) introduced legislation which requires every employment business (‘agency’) to produce information on pay to those candidates that it intends to supply. This is a step that should be taken before the agency enters into any contract with the candidate.

Since the launch of the legislation, it is understood that compliance with the requirement has not been good, and BEIS has recently upgraded is capacity to look into this and complaints that arise.