As of 6 April 2022, Biometric Residence Card (BRXC), Biometric Residence Permit (BRP) and Frontier Worker Permit (FWP) holders will no longer be able to present physical BRPs, BRCs or FWPs in order to evidence their right to work in the UK. Instead, these individuals must evidence their right to work via the Home Office's online service.What does this mean for recruitment agencies?Employers should review internal right to work check processes, procedures and communications in light of … [Read more...]
Will the proposed increase to National Insurance, to cover the social care levy, have a drastic impact on the economy?
The plan is to increase National Insurance by 1.25% for employers and the same percentage for employees totaling an increase of 2.5%.With the cost of living rising since early 2021, December reached the highest recorded level in decades this is not a welcomed increase.Yesterday, The House of Commons called for the Government to replace the proposed National Insurance increase with taxes on the wealth of the richest. This motion has been signed by 21 members and no amendments have been … [Read more...]
Crown Commercial Services for Supply Teachers Framework announcement
The following is a copy of an email sent to Recruitment Agencies that are working within the Supply Teacher Framework explaining that they are to confirm that they are not using Joint Employment models to pay their Supply Teachers.Yet more proof that the government and governing bodies are clamping down on services that they deem unsuitable for workers to be paid under.“We have recently been made aware of an emerging ‘joint employment model’ whereby the employment business and an … [Read more...]
HMRC’s approach to fraud in the Covid-19’s support schemes
As many of the governments coronavirus support schemes are coming to an end, HMRC are assessing the impact of fraud within them.HMRC’s current estimate for the amount lost to fraud and error in the schemes during 2020 to 2021 is a total of £5.8 billion against a £81.2 billion spend. 8.7% in CJRS, 2.5% in SEISS phases 1-3 and 8.5% in the eat out to help out schemes.From the beginning, it was clear the scheme would be targets for fraud and that customers may make mistakes.The … [Read more...]
Minimum Wage Boost
1st April 2022 will see national living wage rise to £9.50, which represents an increase of 0.59p.The increase will support the wages and living standard of low paid workers at a time when pay growth is robust across the economy.Bryan Sanderson, Low Pay Commission Chair, said:The rates we recommended will put money in the pockets of care-workers, food distributors and many other groups of the lowest-paid members of our society up and down the UK. Many of them have made a vital … [Read more...]
HMRC update: New proposal to clamp down on promoters of tax avoidance
HMRC have published further updates on the proposal to clamp down on tax avoidance schemes.The measure is targeted at the most persistent and determined promoters and enablers of tax avoidance.The proposed legislative changes are designed to clamp down on the supply of tax avoidance arrangements and include:a new power for HMRC to seek freezing orders that would prevent promoters from dissipating or hiding their assets before paying the penalties that are charged as a result of … [Read more...]
Right to work in the UK changes for EEA Citizens
With less than two weeks until the right to work checks change for EU residence whom are continuing to live and work in the UK, the employer’s right to work guidance has now been updated.From 1 July 2021, EEA citizens and their family members require immigration status in the UK. They can no longer rely on an EEA passport or national identity card, which only confirms their nationality, to prove their right to work. They will be required to provide evidence of lawful immigration status in … [Read more...]
Are you calculating holiday pay at 12.07%? If so, you could be held liable for pay differences.
The position regarding holiday pay entitlement for workers with varying work patterns was considered by the Court of Appeal in the 2019 case of Harpur Trust vs. Brazel Case Study Ms Brazel, a clarinet and saxophone teacher worked at schools providing individual lessons to its pupils. She worked on average between 10 and 15 hours per week. She was paid by the hour and did not work during the school holidays. Ms Brazel was required to take her holiday entitlement.The school did what … [Read more...]
IR35 Case Study
Among other things, you’ll find that you’re not the first one who was ever confused and frightened and even sickened by human behaviour. J D Salinger.IR35 came into effect in 2000. Before the days of IR35, the most common way of operating as a contractor was as a self-employed individual. In the late 1980’s, HMRC introduced a new rule making any recruitment company engaging in self-employed workers, liable for any unpaid Tax if they failed to deduct full PAYE prior to payment to the … [Read more...]
Your IR35 Time Is Almost Up
With many still thinking IR35 will be delayed on ‘Tax Day’ the 23rd March, reports show no signs of IR35 being a topic of conversation. Tax Day is for the Government to publish tax consultations as part of their 10 year administration strategy, to create a tax system fit for the 21st Century.Part of these consultations will include false CJRS claims, which HMRC have already written to 27,000 claimants where there is a high risk that what they have claimed is incorrect. The action and … [Read more...]