With the new IR35 regime coming into force for medium and large companies in the private sector from April 2020, it is helpful for us to look at how the regime has been implemented and adjudicated on in the public sector, where it has been in force since 2017. The case of Paya Limited and others v HMRC [2019] UKFTT 0583 (TC) shows us that the application of the relevant tests to real-life scenarios can be extremely difficult. So much so, even the panel of the First Tier Tax Tribunal (FTT) could not come to a unanimous decision.
IR35 – Seeking out employment relationships
HMRC has published draft IR35 regulations (to come into effect on 6 April 2020) and a summary of the responses received during the consultation process. With the draft legislation and consultation response paper, HMRC has provided additional information on how the extension will operate.
Draft IR35 legislation published along with HMRC’s response to the consultation earlier this year
The EU Council has had a busy month, adopting two new directives which will strengthen employees' rights. It also adopted a regulation which will establish a European Labour Authority, to support compliance and enforcement in the areas of labour mobility and social security coordination.
EU developments: what new measures might we see on workers’ rights?
On 25 April 2019, the National Insurance Contributions Bill was introduced to Parliament. The Bill deals with the national insurance contributions (NICs) treatment of termination payments made by employers to employees in connection with the termination of employment.
Update – Employer NICs on Termination Awards
As April fast approaches, employers should make sure they are ready to implement the increases to statutory pay, as well as some other important statutory changes which will come into effect next month.
Statutory employment changes from April 2019
The latest statutory instrument coming out of the Good Work Plan, The Conduct of Employment Agencies and Employment Businesses (Amendment) Regulations 2019 has been laid before Parliament. This is the government's attempt to address the recommendation from the Taylor Review that information available to workers should be more transparent, particularly when it comes to pay.
The Good Work Plan delivers some good news for work-seekers
A recent poll of MPs indicates that questions are already being raised as to whether the new pay rules go far enough in tackling pay disparity.
Are the new disclosure rules on pay ratios sufficient to combat excessive pay disparity?
In his 2018 budget speech, the chancellor announced the widely expected changes to the rules on off-payroll working (known as IR35) in the private sector. The move follows reform to the off-payroll working rules in the public sector in April 2017.
What does the reform of IR35 mean for your business?
New legislation is expected to be implemented to ban restaurants from keeping tips from their employees. The intention is restaurant owners will not be able to make deductions from tips which are paid by card in order to fund administration costs.
New legislation seeks to ensure restaurant owners give their employees all tips from customers
RSS
