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...]
Contractors at risk of being taken in by bogus badges from ‘sham’ accreditation outfits
Contractors must start double-checking the badges that umbrella companies display on their website, experts are appealing to readers of ContractorUK.The advice to check that the provider’s badge is a stamp of approval from a genuine, verifiable accreditation body featured in a new umbrella company checklist for contractors.Dolan Accountancy But an avoidance scheme blacklisted by HMRC – Peak PAYE Ltd -- has since been observed using a badge emblazoned with ‘The Institute of Freelancing & … [Read more...]
ONS Reports Increase in Temporary Workers
The number of temporary employees in the UK increased by 9.16% on a seasonally adjusted basis to a total of approximately 1.71 million for the three-month period from October 2021 through December 2021 when compared to the same period a year ago, according to the Office for National Statistics.When compared to the previous three-month period ended November 2021, the number of temporary employees saw an uptick of 1.88%Temporary workers are self-identified when surveyed by the ONS, and … [Read more...]
Hot Topic – Preferred Supplier Lists
With recent headlines, there is a need for Preferred Supplier Lists (PSL's) but at what cost?A contractor could demand that they continue to be paid through an umbrella that is not on an agencies PSL and that umbrella might not be compliant. The contractor may want to continue to use them as their take home pay is 85%+. In this instance, why should an agency want to use them?There is also additional administration in setting them up, if they have not worked with them previously. Due … [Read more...]
HMRC names avoidance scheme promoters for first time
All legitimate umbrella companies have been calling for the regulation of the sector for a long time.We are pleased to announce that Tax avoidance schemes have been named for the first time by HM Revenue and Customs (HMRC) as users are warned they could face large tax bills.HMRC has today advised anyone involved in Absolute Outsourcing’s or Purple Pay Limited’s Equity Participation Scheme to withdraw from them as soon as possible to prevent building up a large tax bill.This is the … [Read more...]
Changes to National Insurance
The big story in this Spring Statement was the announcement that the Government will increase both the Primary Threshold and Lower Profits Limit of National Insurance to bring them in line with the income tax personal allowance of £12,570.The Primary Threshold and Lower Profits Limit are the points at which both employees and the self-employed start paying National Insurance.Speculation had mounted in recent weeks that the Chancellor would cancel the proposed increase in National … [Read more...]
Trade body for Recruitment Professionals responds to the Spring Statement
Responding to the Chancellor, Rishi Sunak’s Spring Statement, Tania Bowers, Global Public Policy Director at the Association of Professional Staffing Companies (APSCo), comments:“The news that the National Insurance Contribution (NICs) threshold has been raised to ensure both the employed and self-employed can earn £12,570 without paying NICs from July is not what we expected or have called for. APSCo wrote to the Chancellor earlier this year calling for a delay to the NICs contribution … [Read more...]
Tax Year Allowances 2022-2023
Please see below updates for this coming April. There is still some debate around delaying the NI increase, I think we are all keeping our fingers crossed that this is delayed or cancelled.Tax AllowancesTax codes will not be changing, if you are currently on a 1257L tax code, this will remain the same for 2022. This means you can earn up to £242 per week or £1,048 per month before paying tax.National Living WageThe national living wage, minimum wage and for those aged 23 and … [Read more...]
Changes to RTW checks in the UK – April 2022
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...]