Changes to non-compete clauses
Non-compete clauses are those which prevents an individual from setting up, or having an interest in a competing business, or going to work for someone who is a competing business.
Category: News
Umbrella regulation draws a step nearer
Victoria Atkins, Financial Secretary to the Treasury, issued a written ministerial statement yesterday announcing a consultation on policy options to regulate umbrella companies and to tackle non-compliance in the market. This is amongst other objectives to ‘simplify’ and ‘modernise’ the tax system, with the intention to make the system fairer for taxpayers, work better for traders and challenge non-compliance.
Make PAYE as pain-free as possible
Supplying temporary workers has always been a minefield in terms of compliance, and since the IR35 rules changed in April 2021 this has become even more complex. Two years on, and businesses are still grappling with whether to take the risk of IR35 or avoid IR35 altogether by engaging the agency workers directly or via an umbrella company.
Amazon drivers claim
In May 2008 we reported on the Court of Appeal case of James v Greenwich. This case set the tone thereafter as the Appeal Court clarified in summary that agency workers will not normally be regarded as implied employees of the hirer unless they work in a way not reflected in the worker’s agreement with the agency. Both hirers and agencies have relied on this case ever since.
Lineker IR35 case unscrambled
The First-tier Tax Tribunal decided that Mr. Lineker had a direct contract with the BBC and BT Sport and therefore the IR35 rules do not apply. On the face of it this seems a bizarre outcome since Mr. Lineker had, and operated through, a partnership with his former wife. Any student of IR35 will know that IR35 is the common name used to refer to the ‘Intermediaries legislation’ – addressing tax avoidance through the use of intermediaries and that a partnership is stated to be an intermediary. Further where there is a contract between the client and an intermediary for the personal services of the individual, Mr. Lineker in this case, the IR35 rules apply so requiring a hypothetical employment status assessment of the individual to client relationship. So how did the tribunal reach its conclusion?
Working with Umbrella Companies – understanding the risks and reaping the rewards
Umbrella companies regularly play an integral role within the recruitment industry supply chains, offering businesses payroll solutions. These companies do not always receive the best press, with links to non-compliance and scandals over tax avoidance. However, rather than allowing uncertainty to affect the way your business uses these third-party companies, we offer you the chance to understand the risks whilst reaping the rewards.
April Minimum wage changes – do you need to update your KID?
April 2023 will see the National Living Wage and National Minimum Wage increasing, so if you are supplying workers and have issued a Key Information Document, you should be asking whether the pay rate referred to in it remains correct.
ARC comments on the Chancellor’s budget
The Association of Recruitment Consultancies (ARC) has commented on the budget as follows:
Commenting on the latest budget statement, Adrian Marlowe, Chairman of the Association, said: “The Chancellor’s statement on 16th March is largely to be welcomed. In particular we welcome all the measures to bring more people into work, whether younger or older, not only given the scale of the labour shortages in the UK but also for our collective social well being. This should benefit the employment sector as well as those currently out of work.
Get ahead of the curve – insight for success
For many years recruitment businesses have supplied company contractors to their clients and in many cases have obtained opt outs from them. This has meant that both the agency regulations and tax obligations on supplying businesses were largely irrelevant. Inevitably understanding those regulations and others, such as the Agency Worker Regulations, has not been seen as important.
The Debate Continues – Harpur Trust v Brazel
The debate regarding holiday pay continues as a consultation is launched with regard to the calculation of holiday entitlement for workers with irregular hours and pay.