HM Revenue & Customs’ new Employment Status Service (ESS) tool to determine the IR35 status of public sector contractors has come under fire from contractor service providers. The tool, launched ahead of a new requirement on public sector companies to set the IR35 status of contractors they engage from 6 April, is facing criticism from service providers just a day after its launch. Commenting on the new tool’s launch, Dave Chaplin, CEO and founder of contractor portal ContractorCalculator, … [Read more...]
IR35 Reform of Intermediaries Legislation: Public Authorities
HMRC has published an update on it's Off-payroll working in the public sector: reform of intermediaries legislation page to include further information for public authorities. Gov.co.uk states under Public Authorities: "For the purpose of this reform, a public authority means a public authority as defined for the purposes of the Freedom of Information Act 2000 and the Freedom of Information (Scotland) Act 2002.This definition covers government departments and their executive agencies, many … [Read more...]
Self-employment driven by higher earners, says report
The rapid growth of self-employment in the UK has been driven more by people in higher-paid than low-paid work, according to a new report. The analysis comes from the Resolution Foundation, an economic think-tank.It says the "privileged" self-employed, with good educational qualifications and higher earnings, made up 57% of the growth in self-employment after 2009.Among them were people working in law, accountancy, health services and management consultancy.The think tank says they … [Read more...]
Booming gig economy is bad for UK public finances, says TUC
Low-paid self-employment and zero-hours contracts are costing more than £75m a week in lost taxes and national insurance contributions, new research indicates.The rapid rise in insecure work in the UK is costing the government almost £4bn a year in lost tax income and benefit payouts, according to new research into the gig economy by the Trades Union Congress.The UK’s growing legions of low-paid, self-employed workers and those on zero-hours contracts earn significantly less than regular … [Read more...]
IR35 inspectors to probe public PSCs retrospectively
Personal service companies deemed inside the public sector’s April 6th off-payroll rules risk having their entire history of contracts probed under IR35, not just those after the date.Most at risk of being investigated under IR35 retrospectively are the ‘pre-April 6th’ contracts the PSC has with the public client, who deems the rules to apply to the PSC ‘post-April 6th.’This was the assessment yesterday from three separate experts on the incoming rules; status advisory Bauer & … [Read more...]
IR35 – are you missing the elephant in the room?
The new “off payroll” rules for workers in the public sector are planned to go live on 6 April.HMRC have issued some guidance with more promised in the next few weeks and the draft legislation has been published but is likely to change before it is finalised.We have an unfinished status tool that won't be ready for public consumption until the end of February.Some public sector organisations are making knee jerk decisions around the status of their contractors and expecting that … [Read more...]
Freelancers will form cornerstone of future workplace
According to insight from Alexander Mann Solutions, freelancers will perform an inherently fundamental role in the future workplace as greater numbers of millennials continue to enter the workforce. However, few firms are equipped to attract and manage such a workforce, they reveal.Market insights indicate that there has been a significant increase in non-permanent hiring over the last decade, and according to a recent survey conducted by Alexander Mann Solutions, 63% of senior HR … [Read more...]
The Institute for Apprenticeships is facing problems
The Institute for Apprenticeships hasn't been launched yet but it's already facing various problems.Many politicians believe that the project is falling further behind every day, and they are now expecting the launch to be a failure.The Institute is supposed to be fully operational within the next three months, but so far no one has been hired to fill either of the top two jobs at the organisation. Initially, the company posted job adverts in June 2016, and the adverts claimed that the … [Read more...]
Hermes facing legal challenge from its self-employed workers
Move is being led by GMB union on behalf of couriers who believe delivery company wrongly classes them as self-employedHermes, the courier company that delivers parcels for John Lewis and Next, is facing a legal claim from workers who believe they are wrongly classed as self-employed, according to the Labour MP Frank Field.Speaking on Thursday, he said the move is being orchestrated by the GMB union. It follows a Guardian investigation that found Hermes was paying some of its couriers at … [Read more...]
Theresa May’s Brexit plans and their impact on employment law
Theresa May’s speech was welcomed by businesses who are seeking clarity on the long term plans for Brexit. Whilst certainty was provided on certain areas, such as whether the UK will remain a member of the single market, other areas remain deliberately vague as the final position is unknown due to the need to negotiate with the European Union (EU).For many employers, the Prime Minister’s confirmation that immigration will be controlled domestically is one of the most important objectives of … [Read more...]