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Net Temps Award Night

 

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 !

 

IR35 Update

IR35 Changes in April 2020

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.

Blunt Tool

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.

VAT Reverse Charge Delayed

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:

https://www.gov.uk/government/publications/revenue-and-customs-brief-10-2019-domestic-reverse-charge-vat-for-construction-services-delay-in-implementation/revenue-and-customs-brief-10-2019-domestic-reverse-charge-vat-for-construction-services-delay-in-implementation

Employee Appreciation Day

 

 

Employee Appreciation Day 2019 at Net Temps Limited. Creating Positive Recruitment Connections. Call us on 0115 9400 968 for all your temporary and permanent construction recruitment requirements.

 

We’re Face Fit Ready

 

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.

 

Net Temps 20th Birthday Party

 

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.

Behind the Scenes Recruitment

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.

 

Codnor Boys & Girls Football Club

Net Temps is pleased to sponsor the Codnor Boys and Girls Football Club, which provides a safe football environment for children of all ages. We wish the teams luck going forward into the current season.

Girls Football Club

Disability Confident

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