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
Last night the Government announced that reform to the off-payroll working rules has been postponed for one year from 6 April 2020 until 6 April 2021. The rules would have applied to Limited Company Contractors providing services to large or medium-sized private sector organisations in an attempt to ensure that people who were working like employees, but through their own limited company pay broadly the same tax as employees.
HMRC has confirmed that the off-payroll working rules are postponed not cancelled and that the intention of the postponement is to provide businesses and individuals with support in light of the COVID-19 pandemic.
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 !
As part of our on-going commitment to social responsibility, Clare Carter and Fay Hodges (based in our Worksop Office) took time out of their busy Christmas preparations to provide shoe boxes containing essentials to Hope, a homeless charity in Worksop. They also provided a food hamper for the Bassetlaw Food Bank to help those in the Bassetlaw community suffering hardship and poverty. Well done Claire and Fay !
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:
Net Temps hosted its second annual “Spooky Recruitment Day” last week with the important goal of raising further funds for its two nominated charities – The Teen Cancer Trust and the Ilkeston Dialysis Unit. As well as staff voluntary donations for fancy dress, the day also incorporated “Best Pumpkin in Show” and a charity prize auction enabled by generous donations from local businesses. To date, we are pleased to announce that we have raised over £1,000 for our chosen charities and we would like to thank the following local businesses for supporting our auction event: Morrisons and Tread Mark Tyres in Colwick, Bon Appetit and Boots in Netherfield, Sauce & Brown, Lyreco, Brewhouse Kitchen, Notts County Football Club and Support Stack Limited.
Face fit testing is a means of assessing how well a respirator seals to a face, which is really important for health and safety reasons when carrying out work in dusty construction environments.
Our consultants received refresher training in this important service that we provide to our clients. Other services include drug and alcohol testing, asbestos awareness training and manual handling training. If you are interested in receiving further details of the comprehensive construction centric temporary and permanent recruitment service that we offer, please call our office today on 0115 9400 968.
Nisha Purewal joins us as Pre-Cast and Aggregate Specialist concentrating upon permanent recruitment. She will supplement our Pre Cast Temporary Team. Richard Jones has been appointed to the position of Permanent Construction Specialist. Richard will focus upon permanent white collar managerial roles. Both have already hit the ground running, after being fully inducted into the Net Temps’ culture of delivering positive recruitment solutions based upon thoroughly vetting candidates and having an in-depth knowledge of our clients’ recruitment needs. These are key strategic appointments for Net Temps, allowing us to deliver a full and complete recruitment service to new and existing clients alike.
Should you require their services, Richard and Nisha can be contacted as follows
- Richard Jones – email@example.com – mobile: 07377 414 333
- Nisha Purewal – firstname.lastname@example.org – mobile: 07535 328 249
It’s important for us as a team to get together and share best recruitment practice and strategy – and refuel! Luckily, our Managing Director, Scott Bulloch is a master pancake chef. Need some of our construction recruitment expertise? Call our consultants on 0115 9400 968.
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 !