HLAS

The Supreme Court has ruled that drivers for the ride hailing App Uber are workers not self-employed individuals and hence are entitled to holiday pay, pension rights and the right to be paid the national minimum wage. This case will have implications for other workers in the "gig" economy and may also have a bearing on the tax status of such workers. HMRC will certainly be taking an interest in the Supreme Court ruling. Note that tax law doesn’t necessarily follow employment law, but the boundaries are becoming increasingly blurred making it difficult to determine an individual's employment status with [...]

The "off-payroll" working rules that apply to certain workers supplying their services to clients via their own personal service companies start from 6 April 2021. Under this new regime end user businesses will be required to determine whether that individual would have been treated as an employee or not if directly engaged. This will be a significant additional administrative burden on the large and medium-sized businesses to whom the new rules apply. This is a complex area based on different decisions by the courts and HMRC suggest that end user organisations use the CEST (Check Employment Status for Tax) online [...]

Over half a million pounds awarded to expand work programmes to help more people gain in demand sector-specific skills has been announced. Two regions will benefit to expand the delivery of the construction skills bootcamps, helping more people to gain vital skills in demand from employers. The funding will focus on developing test models that can be scaled to other areas. Skills bootcamps offer free, flexible courses lasting up to 16 weeks covering areas including construction, digital and technical. The courses are open to adults aged 19 and over and provide a chance to learn sector-specific skills and offer a [...]

Below is our weekly roundup of changes to government support information generally and for businesses, employers and the self-employed. Please contact us if you need help. HMRC Update - financial support schemes available HMRC have published their latest information about financial support schemes available, including the VAT deferral new payment scheme and the Coronavirus Job Retention Scheme (CJRS). VAT deferral – apply now to spread your payments The VAT deferral new payment scheme is open for all businesses who deferred VAT due between 20 March and 30 June 2020 and still have payments to make, or who are unable to [...]

If you run your own payroll, it is time to look at the end of year payroll tasks for the current year and key changes affecting payroll for 2021-22. HMRC have updated their webpage on annual reporting and tasks needed before 5 April 2021. This covers sending your final payroll report, updating employee payroll records, updating payroll software, issuing P60s and reporting expenses and benefits. See: https://www.gov.uk/payroll-annual-reporting HMRC have issued their guidance on P9X: Tax codes, to assist in understanding which PAYE tax codes to change, how to change them and which codes to carry forward ready for the new [...]

As we head towards April now is the time to think about pre-tax year planning, doing the year end administration and filing the necessary forms to HMRC. Time is running out to make the most of your tax allowances this year.  The first step to making the most of your tax allowances can mean looking closely at your pension. UK residents under 75 can add money to a pension and receive tax relief on it. You’ll automatically get basic rate tax relief (currently 20%) paid into your pension by the government. If you pay tax at a higher rate you [...]

The Office for National Statistics (ONS) has published “Coronavirus: a year like no other”. A year on from the first government instructions to significantly limit social contact because of the coronavirus (COVID-19) pandemic, ONS look at what the data tells us about these extraordinary 12 months and the way our lives have changed. The data shows the stark reality of deaths and hospitalisations resulting from the pandemic. The figures also show annual average hours worked dropped significantly in lockdown which, when you consider up to 8.9 million people on furlough and many businesses unable to trade as normal during lockdown, [...]

Last week the UK learnt more about the vaccine supply chain problems, EU states suspending and then resuming the AstraZeneca vaccine rollout and more posturing from politicians on vaccine availability. Despite the news rollercoaster, more than 27.6 million people (more than half of the adult population) have now had the jab and the government says it remains on track for its phase 1 target of 32million first vaccine doses by the 15 April. It also appears we are still on target for the relaxation of restrictions by the summer even if the EU restrict supply. This is good news for [...]

These are the suggested reimbursement rates for employees' private mileage using their company car from 1 March 2021. Where there has been a change the previous rate is shown in brackets.   Engine Size Petrol Diesel LPG 1400cc or less 10p   7p 1600cc or less 9p (8p) 1401cc to 2000cc 12p (11p) 8p 1601 to 2000cc 11p (10p) Over 2000cc 18p (17p) 12p 12p   Note that for hybrid cars you must use the petrol or diesel rate. You can continue to use the previous rates for up to 1 month from the date the new rates apply.