IR35 – April 2020

REC figures on the Economy!

In my profession it is important to be knowledgeable about employment law and the Conduct Regulations.  This week I attended a training session held by the REC on IR35 and the introduction to the Private Sector in the proposed month of April 2020.

Do you have contractors working for you?  If so and you are a company with over 50 employees, a turnover of over £10.2m and a balance sheet total of not more than £5.1m this new legislation will affect you!

It is suggested that if you have contractors after April 6th 2020, to end their contract and payroll payments before that date, say 3rd/4th April 2020 to make it simple if you are going to renew their contract and continue with their services.  You then need to make a decision on whether your contractors are in IR35 or outside of IR35? #rec or #ir35.

Using CEST in not a reliable way to determine status and has been challenged in the Courts, so best to contact an Umbrella company recommended by the REC to audit your situation.

To Be or Not To Be IR35?

I always enjoy the REC’s (Recruitment Employment Confederation’s) webinars and this week was no exception on the IR35 legislation that has been run out to the Public sector and the results, now pending the Private Sector.

Speakers on the webinar were:

Karen O’Reilly – Stakeholder Engagement Manager for the REC.
Philip Campbell – Senior Policy Adviser for the REC.
Andy Chamberlain – Deputy Director of Policy for IPSE.
Mark Beal-Preston – MD for First Freelance.

The REC is representing industry to the highest levels of Government to give us the heads-up on policy developments and our focus at present is on

Immigration and Skills, Industry Regulations, Inclusion – helping people to get back into work and progression, Procurement, Taxation and The Future of Jobs.

A hot topic discussed was extending public sector reform to the private sector with IR35!

– Transfer the responsibility for determining whether a worker would have been regarded as an employee if engaged directly, to the engager, ie. end-client
– The client or agency paying the PSC, would be responsible for deducting the income tax and NICs, and paying them to HMRC
– The liability for paying employer NICs would transfer from the PSC to the end client or fee- payer/agency.

It was interesting to hear that there was an overwhelming concern from agencies on being liable as a PSC and that everybody felt the end client should be responsible for paying the tax and NI of any due to HMRC.

The likely timeline now for the change into the private sector is 6th April 2019, but could be 2020.  The latter was felt was the best as this would give the opportunity to iron-out any complications and clarify guidance on the HMRC compliance test as many of their test cases are being lost in court!  Also, with the unknown effects of Brexit on our industry, it would be better to wait and see those results first before any more impact?

Current results in the public sector are that 3 out of 10 contractors ended their contract before the new rules came into effect and that over a 1/3 moved to an Umbrella Company, 23% showed no change, 17% found new contracts where IR35 did not apply and 4% stopped working altogether.

Advice for the contractors was to make sure their Umbrella companies were compliant!

Overall feeling from the poll is that recruiter’s costs would increase due to the needs for greater resources to support the proposed legislation due to increased Accountancy fees, IT systems to support it, staff costs to manage it, training costs and system CRM costs.

I suspect that too much risk put on the agencies, will result in less contractors in the market? Less contractors in an ever diminishing labour market, especially with Brexit, could equal a difficult time for business? Keep in touch with Avatar for further developments.

UK Job Market – hot off the press!

Welcome to our latest blog – packed with news from the world of recruitment.  To go straight to the article that interests you most, click on the headline.

Balmy days for the UK job market – but storm clouds lie ahead

Happy news!  We’re ethical!

Interview insight – just engage

Hot news!  How the government got it wrong …
… and other Employment Law nuggets

Balmy days for the UK job market – but storm clouds lie ahead.
We’re members of the REC (Recruitment Employment Confederation).  This means we’re on the ball – always up-to-date with changes and developments in the recruitment market.  The other day we attended a webinar which highlighted the current happy state of the UK job market.  It seems that the current growth in the economy is contributing towards a healthy 32.3 million people in work – 0.5% up on the same quarter last year.  Even better, the unemployment rate is down to 4.3% – historically a negligible figure and one of the best, even rivalling Germany.

However, the news isn’t all rosy (whenever is it?).  Employers are struggling to fill roles.  There are currently over 810,000 job vacancies, demonstrating a worrying candidate shortage.  Once Brexit is done and dusted, this market will doubtless be squeezed even further.

Need to know more about the UK Job Market?  Get in touch.

Happy news! We’re ethical!
We’re proud of our ethical standards.  That’s why we’re a Corporate member of the REC.  To be a member, every two years, we have to sit an exam on our industry’s Conduct Regulations.  The other week, my turn came around and … I passed with flying colours!  This means I’m good at what I do.  So, if you’re not sure you’re getting the support you deserve from your recruitment network, just get in touch.

Interview insight – just engage
“How did it go?”, I asked a crestfallen candidate the other day.  He’d just returned from an interview for a role as a Mechanical Engineer.  His reply –
“The feedback was that I didn’t interact.  I was difficult to extract information from.  What’s their problem?  I applied for a role as an Engineer – not a Radio Presenter”.
This was sad news for both of us.  But this tale does underline the important, often ignored, truth.  Your skills are important.  Of course they are.  But so are your ‘people skills’ – especially during the interview process.  But there’s good news.  I use my wide experience in the world of jobs to provide interview training that will make all the difference.

Find out more.  Get in touch …

Employment Law nuggets
Michelle Morgan of Gardner Leader Solicitors is a good friend and colleague.  She’s an employment solicitor.  Every so often we get together and bat around newsinformation and ideas.  Here are some snippets from our last meeting.

Hot news!  How the government got it wrong
Since July 2013, UK workers, wanting to bring a claim to tribunal, have been hit with a triple-whammy.  They are charged an initial fee.  Then, if the claim is heard, they must pay a second fee, and yet a third charge if they want to appeal the decision.

It transpires that, Employment Tribunal fees are unlawful under both UK and EU law because they prevent access to justice.

Following their introduction in 2013, Unison have been fighting the ruling.  In two High Court challenges and in the Court of Appeal, they were unsuccessful.  Unison’s final appeal to the Supreme Court was heard on early in 2017 … and they were successful, with the decision being announced in July.

So – what does this mean for aggrieved employees?

Currently, if you want to bring an employment tribunal claim, there’s no fee to pay.  With the Government currently preoccupied with Brexit, there are no immediate plans to change this.  Employment lawyers do believe that fees might be introduced in the long term – but at a reduced rate.  So, access to justice shouldn’t be unduly affected.

What about fees already paid or due to be paid?

The Supreme Court has clearly stated that the Lord Chancellor’s Department must refund all fees paid since 2013.  The Lord Chancellor has acknowledged this.  The total to be re-paid could amount to around £33 million.  The Ministry of Justice and the Courts Services announced recently that there would be a phased implementation of the scheme.  Initially, the Courts will invite approximately 1,000 eligible parties to apply for reimbursement.  Full roll-out of the scheme is expected to take place in the coming weeks.  Successful applicants will also receive interest at a rate of 0.5%, calculated from the date of the original payment up until the refund date.

Those entitled to a refund include:

  • Parties who paid an issue fee which was not later paid by their opponent.
  • Parties who were ordered to pay their opponent’s costs.

If you think you may be entitled to a refund, register your interest by e-mail to –  gethelpwithfees@hmcts.gsi.gov.uk

If you have any employment law queries, either as an employer or an employee, Michelle Morgan would be delighted to help.  Send an email to –  m.morgan@gardner-leader.co.uk

To find out more about any of these topics or anything ‘recruitment’

Give me call – Chris Dyckes – 01295 724570.

Or send an email – chris@avatarrecruit.co.uk.

 

It would be great to hear from you.

REC figures on the Economy!

Avatar Recruitment is delighted to report the most ‘hot off the press’ information from the REC (Recruitment Employment Confederation), on the employment market. Could this affect your business?

For all those of you who are looking for new roles at present, there is some excellent news hot off the press from the REC on the current labour market and for those of you recruiting, some interesting statistics to consider when recruiting for new roles and what the information will mean for you!

GDP is currently slowing in growth and was at 2.0% for 2016 and for this year is forecast to be between 1.6% and 1.9%.

There is currently record employment with 31.95 million in employment – now showing as 74.8% the highest since 1971 when records began and juggling for position with Germany who are around 75%. Compare this to the US whose employment is 62% – 63%.

Unemployment is low at 4.6% which is down from 5.1% at the end of 2015.

There are 381,000 more people in work now than a year ago, with 777,000 vacancies advertised every month, resulting in 3.7 million more jobs since 2010!

Report on Jobs for June 2017 which is the REC research shows that permanent appointments have seen the sharpest increase for over two years.

For the employer, this demonstrates that you will find it harder to fill jobs and that starting salaries are already continuing to grow, along with temp rates. For more information and advice on any recruitment campaigns, please contact an REC member for further support! Avatar is a Corporate member.

The other news is that the REC is trying to influence Government, so that any new policies that affect the Employment Market is given the utmost consideration by Government before running them out, such as deep analysis, conducted on behalf of the REC regarding the Migration Policy, Data Protection and IR35 plus the effects on the Self Employed who life is getting more challenging for, but who take a great deal of risk, with few benefits now!

Now that you are probably in full time employment, you need to be watching what Mortgage advice you are getting and my friend and colleague Terry Humphreys has published some information below, although dated Autumn/Winter 2016 it is still very relevant and my other colleague Nigel Scrimshaw can find you the perfect holiday tailored to your needs both in the UK and abroad, whatever your desire is.

Life’s A Beach

By now the holiday celebrations are a distant memory, you may have broken your new year’s resolution many times by now, and Christmas puddings have been replaced by Cadburys Crème eggs on our supermarket shelves. But one thing that never changes at this time of year along with the Fog and the Ice is, the cavalcade of TV adverts showing white shell sand and turquoise blue waters, tempting you to far flung exotic places.

But when you see these pictures you may imagine these places to be far flung paradise islands, but did you know you don’t have to take a 14 hour plane journey to see some of the most spectacular stretches of sea and sand on the planet. There are plenty to be found in Greece and Cyprus.

From the white shell sand and aqua marine sea that laps the shore of Halkidiki Greece to the golden sands of Nissi bay in Cyprus, they offer just about everything a beach loving dreamer could want, alongside a rich history and colourful culture to boot. But with several thousand beaches in Greece alone, the tricky part is knowing which one to choose. To help heres one of my favourites.

KASSANDRA PENINSULA, HALKIDIKI, GREECE

life beachIf your looking for a super luxury option that caters for families as well as couples, look to Halkidiki.It features extensive, fine, white, sandy beaches with crystal clear waters. The four mile long Bousoulas Beach is a renowned hang out for party goers, with weekly “white night” beach parties. The water is shallow enough for kids to swim in, and clear enough to snorkel in, and the sun sets aren’t bad either, think glorious swathes of pink and orange fusing over the ripples below.

Sani resorts with its four properties is a popular choice in the area, offering several private beaches, and a range of water sports and activities. Its also a great choice for families with kids clubs and a “Babewatch” service, which gives parents a 30 minute break away from the little ones.

A week half board starts at £855 in April including flights. Bookable through Nigel.scrimshaw@Travel Counsellors.com

Travel counsellors is an independent travel company offering a friendly, one to one travel service, offering a personal relationship with an experienced travel expert. Your expert plans your perfect trip, stress free and while you’re away we will be here for you 24/7. Your travel counsellor will take time to get to know you and tailor your perfect holiday, and every penny of your booking is completely protected by our unique financial protection trust.

nigel2

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