As businesses continue to adapt to the evolving landscape of employment, many are turning to umbrella companies as a solution to streamline processes and manage their workforce efficiently. The HMRC publication dated 30/11/2023 sheds light on the responsibilities that businesses need to be aware of when engaging with umbrella companies. In this blog post, we will explore key insights from the publication and provide guidance for businesses to ensure compliance and successful … [Read more...]
Tackling Non-Compliance in the Umbrella Market
In 2018, the government committed to regulating umbrella companies following the Good Work Plan. In 2021 HM Treasury, HMRC and the Department for Business & Trade called for evidence on the policy options to regulate and tackle non-compliance in both tax and employment rights by umbrella companies.Umbrella companies play a big role in the temporary/contract supply chain providing their workers with employment rights and deducting the appropriate tax and national insurance contributions. … [Read more...]
Crackdown on National Living Wage and National Minimum Wage underpayments
The National Minimum Wage was introduced in 1999, and the National Living Wage in 2016. The NMW and NLW provide essential protection for lower paid workers, ensuring they are fairly paid for the work completed.The minimum wage sets the minimum hourly rate of pay that all employers are legally required to pay their workers, subject to their age and whether they are an apprentice.The Government is committed to taking robust enforcement action against employers who fail to pay staff … [Read more...]
Student Loan Plan 5, What You Need To Know
From September 2023 new students starting university or higher education will now be on a ‘plan 5’ loan system.This is the biggest change to student finance in England in a decade and will lead to many paying back double what they would have done on the old system.It is important to recognise that student loans are not like other loans. They come from the Government and give you more protection than loans that you have with a credit card or buying a home.You do not repay anything … [Read more...]
Biometric Permits and Cards
If you have been granted permission to enter or remain in the UK beyond the 31st December 2024, you may be wondering why your Biometric Residence Permit has an expiry date of the 31st December 2024?This is because from the 1st January 2025 the Home Office have confirmed they will be introducing BRP’s which incorporate encryption technology to meet EU requirements.The EU requirements on BRPs were lifted following the UK’s departure from the EU, were it was decided that BRPs will continue … [Read more...]
Working Time Regulations
The Law on working time sets rules for the maximum weekly working hours and how employees can work more hours if they choose, rest during the working day, week and year, young workers’ maximum working hours and rest breaks, night work, holiday entitlement and more. This is to protect everyone’s health, safety and wellbeing and applies to employees, workers, agency workers, apprentices, casual and seasonal workers and zero hours’ workers.Currently by law almost all employees over the age of … [Read more...]
The REC Backs Plan To Rectify Holiday Pay Unfairness
In 2022 The REC called for the government to consult on the fallout – not least because the ruling means part-year workers are entitled to a larger annual paid holiday entitlement than part-time workers who work the same number of hours across the year but work fewer hours each week consistently across the year. The ruling has caused anxiety and confusion among employers, workers, business representative groups.In a submission to the government, the REC backs the Department for Business and … [Read more...]
Government Consults On Holiday Pay Entitlement For Irregular Hour Workers
With last years Harper V Brazel case hitting the headlines, the Government is now consulting on holiday pay entitlement for irregular hour workers.It wants to hear from agency staff, contractors and umbrella companies on how the entitlement is totted up, along with making some proposals of their own.Because of the result of the Harper V Brazel judgement, part-year workers are now entitled to a larger holiday entitlement than part-time workers, who work the same total number of hours … [Read more...]
SEB on ICE
With the Single Enforcement Body shelved for the time being, it’s up to umbrella companies to step up.A recent article stated that the UK Government has reportedly shelved plans to introduce an independent body to oversee workers’ rights in the UK.On the 13 December, Grant Shapps told the Commons that plans for a Single Enforecement Body (SEB) for labour laws have been put to one side.Announced in June 2021, the watchdog was intended to combine the work done by the Gangmasters and … [Read more...]
HMRC has updated Disguised Remuneration Settlement Terms 2020
On 7th December HMRC has updated Disguised remuneration settlement terms 2020 for tax agents or advisers.If you’re in a disguised remuneration scheme, there’s guidance on settling your own tax affairs.The guide can be used to help anyone in these schemes understand how their disguised remuneration liabilities will be calculated under the 2020 settlement terms. They take into account changes to the loan charge following the independent loan charge review, but should be used for … [Read more...]