We’ve recently acquired new LinkedIn followers, and thought it was a great opportunity to introduce ourselves. Watch our new video here. Click on the following link if you would like to follow us too https://www.linkedin.com/company/net-temps-ltd
The Net Temps Awards night took place on Friday 28 March 2020 at Masala Junction, to celebrate staff achievements over 2019. Hotly contested awards included Top Billing Recruiter and Resourcer of 2019, Employee of the Year, Unsung Hero, Most Improved Recruiter and Resourcer, New Business Consultant, Most Improved Client, Margin Monster, Top Billing and Top Filling Resourcer and, last but not least,an award for Recruitment Compliance.
A great night was had by all, and well deserved congratulations go to our winners !
Yesterday, the Net Temps’ management team hosted our annual business review day, where key business areas were discussed with staff as part of our staff engagement strategy.
What is IR35?
IR35 is a tax legislation which came into force in the year 2000. Its purpose was to address and identify individuals who were avoiding having their earnings processed via PAYE by using a corporate entity to achieve a more efficient and lower tax deduction. The legislation allowed HMRC to challenge those people who supplied their services to a client via a company (whether that was a Personal Service Company, Managed Service Company or Composite Company) and who HMRC felt should have been classed as a “disguised employee”. This basically allowed HMRC to pierce the corporate veil from a tax perspective and ensure that they paid tax in the same way as a permanent employee.
IR35 therefore introduced two types of contractors – those that are “Inside IR35” who are deemed to be employees, and who make PAYE deductions from all contract earnings and those that were “Outside IR35” because they provide a genuine service, in business on their own account, with significant financial risk and no mutuality of obligation so they should not be subject to the tax treatment applicable to employees.
This legislation wasn’t as successful as anticipated and was subject to much criticism. It failed to provide a clear test of what an ’employee’ and a ‘genuine business’ actually was, and it also left the legal responsibility for determination up the individual as to whether they fell inside or outside of IR35.
In 2017, HMRC changed its approach, issuing new legislation directed at the public sector and redirecting the legal responsibility for determining the status of a contractor to the end client. This legislation will now be rolled out to the private sector in April 2020.
Why is this important to me?
From April 2020, recruitment agencies and clients will need to work closely together to ensure the correct tax determination of any limited company contractor that is placed on site. This is not a new concept. Since 2014, similar considerations have been in place regarding the self-employed – only those contractors not under (or subject to the right of) supervision, direction and control are eligible to receive a CIS payment.
According to the legislation and guidance, clients must take reasonable care when assessing and classifying whether a limited company contractor falls inside or outside of IR35. Emphasis is also put upon carrying out individual determinations, and avoiding blanket policies. Clients are expected to carry out the determinations and pass these down the chain via their recruitment agencies to the limited company contractor, who has a right to challenge that decision via a complaints procedure.
Penalties and fines will be imposed where the failure to adhere to the legislation has occurred. For example; where a client has failed to use reasonable care to complete a determination leading to an underpayment of tax, the client will face penalties. Where the agency has not made appropriate tax deductions to the limited company contractor’s pay, the agency will face penalties.
Accordingly, both clients and agencies will need to modify internal procedures and upskill staff to be able to correctly identify and apply the new legislation.
Net Temps are already working collaboratively with clients to ensure that procedures are in place for adhering to the new legislation; which also applies where subcontractors are paid directly by clients via limited companies.
Current considerations include; amongst other matters:
- Assessing the contractor population in order to determine the extent of the problem;
- Identifying which staff of the client should be responsible for issuing status decisions and at what stage of the recruitment lifecycle;
- What considerations should form part of the Status Determination;
- Maintaining suitable records
- Looking at the cost implications of the status determinations whether that is inside or outside IR35.
If you are a client or a limited company contractor and wish to find out more about IR35 and its impact, call us on 0115 9400 968. We’re happy to help.
HMRC has reflected upon its decision to implement the VAT Reverse Charge on 1 October 2019, after concluding that UK businesses have had insufficient time to prepare.
Accordingly, it has decided to delay implementation for a period of 12 months. The VAT Reverse Charge will now operate from 1 October 2020. The link below provides additional guidance:
Increase in Worker Pay
New National Minimum Wage rates and Living Wage rates will come into effect from 1 April together with a mandatory increase in both worker and agency pension contributions from 6 April.
The National Minimum Wage (NMW) & The National Living Wage (NLW)
The NMW and the NLW are the minimum wage per hour that a worker is entitled to receive in the UK. These rates are reviewed annually by the government and must be reflected in a worker’s hourly rate rates from 1 April.
The new rates are set out in the table below:
The Pension Act 2008 requires all UK employers, including Recruitment Businesses to enrol eligible workers into a pension scheme. Once enrolled those workers are entitled to receive a minimum level of pension contributions. From 6 April, these mandatory pension contributions shall increase as set out below:
Should you require further information regarding the contents of this article, are a client requiring positive recruitment solutions or are a worker or candidate requiring our work finding services please call us on 0115 9400 968.
Net Temps would like to wish its clients, candidates and temporary workers a Merry Christmas and Happy New Year. Our Christmas jumper clad team look forward to continuing to provide positive recruitment solutions in 2019. In the meantime, should you be a client looking for temporary or permanent construction professionals or a candidate or temporary worker looking for a new role, don’t hesitate to contact the Net Temps’ construction specialists on 0115 9400 968.
Incorporated in August 1998, Net Temps has been creating positive recruitment solutions for the construction and allied industries for the last 20 years. We toasted our success with an evening at the Brewhouse & Kitchen, by the River Trent with friends and family and looked forward to our coming of age celebrations next year when Net Temps is 21.
Net Temps has sponsored Colson Skips and now invites you to enter our competition. The signs pictured are now out and about and featured on skips in the Midlands area.
Send us a selfie with our sign and brief details of where it was located and we will enter you into our quarterly prize draw to win £250 in supermarket vouchers.
You can post your entries to email@example.com. Good luck.
We’ve had a busy couple of months at Net Temps, and as such, it’s even more important to recognise those employees who have made a positive impact to our business during these periods.
Jill Lowther (Business Support Administrator) and Paige Cartwright (Accounts Assistant) stepped up to the mark in December, demonstrating an outstanding ability to take on new challenges and succeed with them. Jill ran her first solo payroll, after intensive training and is now able to provide resilience in our payroll team after becoming an “in-house expert”, whilst Paige met and substantially exceeded financial targets set, showing a confident and determined mind set.
Congratulations go to Jill and Paige !
Exciting times are ahead for Net Temps who is on the hunt for exceptional people. Net Temps is expanding and is delighted to announce that it will soon be doubling its operational capabilities. Established over 18 years ago, Net Temps Limited has built a solid reputation as a recruitment business delivering quality workforce solutions to clients within the construction, utility, engineering and manufacturing sectors. The company has now secured a further adjacent freehold property which will increase its capacity to employ at least an additional 25 specialist recruiters.
Scott Bulloch MD of Net Temps endorses the move and comments ‘Net Temps has an amazing brand with a first class reputation in the market. The business is ripe for strategic growth and I have a remit to establish a perm division to compliment our temporary business and invest further into our temporary white collar division where we see exceptional opportunities. To facilitate the move we have already secured a first class permanent consultant, a business development consultant and two recruiters to strengthen our delivery capabilities. I would be very interested in speaking with any experienced recruiters or graduates who are looking to work for a business which values its people, and provides a long term career path with exceptional rewards to match’’
Scott can be contacted by e mail firstname.lastname@example.org or mobile 07930 867 212 for an informal discussion.
The Construction (Design and Management) Regulations 2015 (CDM 2015) came into force on 1 April 2015 replacing CDM 2007. The purpose of these Regulations is to improve health and safety standards across the construction industry for both those engaged in construction work and those affected by it, such as the general public. The Regulations impose a legal duty upon virtually everyone involved in a construction project. CDM 2015 applies to all commercial and domestic projects, regardless of size or duration where there is more than one Contractor.
Whilst the construction industry is used to adhering to health and safety legislation, given that there are over 300 Regulations currently in force dealing with health and safety alone, CDM 2015 changes current work practices by redefining the ambit of “duty holders”.
In particular, CDM 2015 removes the role of the ‘CDM Co-ordinator’, replacing it with the new position of ‘Principal Designer’. It is envisaged that this new role would ideally be undertaken by an individual, or indeed, an organisation, in control of the Pre-Construction Phase of the project and it holds the responsibility of co-ordinating the health and safety aspects of this phase.
The former duties of the CDM Co-ordinator are now split between the Client, the Principal Contractor and Principal Designer, the latter two having been appointed by the Client.
The Client has the responsibility to ensure that the Principal Designer’s performance is up to standards and that an adequate Construction Phase Plan is issued by the Principal Contractor.
The Client must also issue an F10 notification to the HSE if 20 or more people are working on site and if the project lasts 30 days or more.
Projects that began before April 2015 can continue to operate under the old Regulations until 6 October 2015. After this, the project must operate in accordance with CDM 2015.