FCSA Workforce Matters | OTS seeks self-employed people views’ on reporting their tax

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Welcome

As September is now upon us, so are the deadlines for a number of policy developments. Tomorrow is the deadline to respond to the draft legislation for the planned 2020 off-payroll changes. FCSA has responded to reiterate our view that the changes should be delayed further as the issues that we have raised have not been addressed, nor have concerns raised by other respondents to the policy consultation. We are not the only voice suggesting delay and only time will tell as to what the Government decides.

Other consultations underway include:

OTS project on how to simplify reporting and paying tax for self-employed people.
BEIS proposal for a single labour market enforcement body with a broad remit (to encompass HMRC NMW, GLAA and EAS).
BEIS proposal to tackle one-sided flexibility, e.g. compensating workers for cancelling shifts at short notice right for workers to receive reasonable notice of shifts.

FCSA is involved in all of the above and yesterday we met with the Office of Tax Simplification to discuss their project which considers a range of ideas aiming to be applicable for both property landlords and self-employed people. You can read more about it in our Government, Policy and Technical section below.

Lastly, don’t forget to book your place for our IR35/Off-Payroll seminars specifically for recruitment agencies in Manchester and London. These are already popular, so book early! You can register here for Manchester on 25 September, or for London on 15 October book here.

I hope to see you there!

Best wishes

Julia Kermode, FCSA Chief Executive

In this Issue


	News UK net migration falls by 12% Figures from the Office of National Statistics show that UK net migration has fallen 12% to 226,000 due to low numbers of EU nationals arriving in the UK for six years. According to the Financial Times, this is mainly because of a decline in economic migration: the number of EU nationals arriving to work dropped to 92,000 in the year to March, less than half the peak of 190,000 in the year to June 2016. Although EU immigration decreased, there was still a net inflow of 59,000 EU nationals into the country. Net migration from outside the EU remained broadly stable at 219,000, with particular increases in those coming to the UK to study. HMRC writes to GSK contractors regarding their IR35 status Almost 1,500 contractors at GSK have received letters from HMRC stating their view that the contractors’ assignments come under the off-payroll working rules, and requesting the contractors to review the tax status of their assignments for 2018-19. The letter advises contractors to use HMRC’s online CEST tool, and if outside of IR35 to provide HMRC with supporting evidence by 19 September 2019. HMRC has confirmed that they have sent letters to contractors in sectors where they believe there is a high risk of non-compliance, but that this does not necessarily mean that the individuals receiving the letters have breached tax rules. Most industry experts have suggested that the letters do not have a legal basis, however it would be sensible for affected individuals to respond to the letters rather than ignore them. TUC calls for more bank holidays The Trades Union Congress (TUC) is urging the Government to create a new public holiday before Christmas to help people to cope with the pressures of work. Workers in England and Wales get eight bank holidays a year, compared to the EU average of 12 public holidays a year. Workers in Slovakia, Slovenia, Finland and Cyprus are entitled to 15 bank holidays a year, almost twice as many as in the UK. The TUC also wants people who work bank holidays to receive premium pay or time off in lieu. Costa Coffee makes unlawful deductions from staff wages Costa Coffee employees have had costs of £200 deducted from their wages to pay for staff training. Staff also reported that they have had deductions from their wages in order to balance till discrepancies and running costs. Costa head office stated that staff contracts for franchise stores are managed by partners and stated that some staff contracts did have clauses relating to deductions from wages. For more insights, please see Brabners Legal Update later in this newsletter.


	Government, Policy & Technical OTS seeks self-employed people views’ on reporting their tax The Office of Tax Simplification would like to hear from anyone who is self-employed and sub-mits an annual self-assessment return. They are seeking views to inform their current project on how to simplifying paying and reporting tax for self-employed people. The online survey asks whether more regular reporting of income and expenses would make budgeting for tax bills easier, whether it would be helpful to make payments throughout the year, whether the client should deduct some tax at source, and whether the individual’s business bank account should make automatic tax payments on their behalf. The project will result in the publication of a paper to outline high level options for further consideration. FCSA met with the OTS yes-terday to discuss their ideas, and we will continue to proactively engage as proposals develop. You can read the full survey here. HMRC issues guidance on off-payroll changes HMRC has issued new guidance in relation to off-payroll changes, as summarised below. There are four new guides for different stakeholders, as well as updated guidance on specific issues. Click here for more information and links to the various guides > HMRC have confirmed that they are working with stakeholders to enhance the CEST tool, and an updated version will be available before the end of the year. Government launches new flexi-job search facility The Work and Pensions Secretary, Amber Rudd MP, has announced the launch of a new jobs scheme aimed to help people to balance work and life. It uses technology to gather more than 50,000 job adverts, both full-time and part-time, all specifically designed with flexi working in mind. Amber Rudd hopes that parents will particularly benefit from being able to find good roles that are flexible and that will help them to balance their priorities.


	Market Analysis
	Zero Hour Contract worker numbers restored to Q2 2017 levels



	From the bi-annual release of data from the ONS on Zero Hours Contract (ZHC) working, a 15% YoY increase in the number of workers registered as working in this manner in Q2 2019 (896k) broadly matches levels last seen two years earlier (883k). Of this number, 285k (32%) suggested that their ZHC role, as their main job, was temporary. As a proportion of all ZHC workers, this is slightly down on both the Q2 2017 (34% / 287k), and Q2 2018 percentages (33% / 259k).

Brabners LLP Legal Update

Employment Tribunal rules that Costa Coffee franchise had unlawfully deducted Claimant’s wages

You may have seen that Costa Coffee has been in the press recently for deducting pay from employees’ wages.

The BBC has reported that a number of Costa Coffee employees claim to have had their wages docked upon leaving the company to cover training costs.

Last year, in the case of Gyori v Goldex Investments (Essex) Limited t/a Costa Coffee, the Tribunal decided that the Costa Coffee franchise had been wrong to deduct money from Mr Gyori’s wages to cover the costs of training.

For some employers, the cost of training new starters can be significant, and many employers do seek to recoup some of those costs if the employee leaves within, say, 12 months of starting employment. However, simply having a clause to that effect in an employee’s contract does not mean that it is lawful to make the deduction from their pay.

Read on to find out more >

New FCSA Accredited Members

Clipper Contracting

Clipper Contracting secures FCSA Accreditation for the provision of umbrella employment and self-employed/CIS payroll services. For more information about Clipper Contracting, visit our Directory of Members >

Unified Payroll

Unified Payroll has become the latest firm to become accredited by the FCSA for the provision of umbrella employment services. For more information about Clipper Contracting, visit our Directory of Members >

FCSA Accreditation demonstrates to freelancers, contractors and recruitment businesses that members are acting both professionally and ethically within the UK tax, employment and regulatory laws. Coupled with financial stability tests, FCSA Accreditation is proof that professional businesses can take the lead in delivering the highest levels of industry standards.

Upcoming Events

IR35/Off-payroll Reform - Yes, it's happening! Recruiters, are you ready? Seminars

Hosted by FCSA in association with EY and Qdos

Dates & Locations

09:30 – 12:30 Wednesday 25 September 2019 EY, 2 St Peters Square, Manchester

09:30 – 12:30 Tuesday 15 October 2019 EY, 1 More London Place, London

With just a few months until the IR35/off-payroll legislation comes into effect for the private sector, we are asking the UK’s leading recruiters – are you ready?

As the UK’s leading independent compliance accreditation for employment intermediaries, FCSA is inviting recruitment businesses to attend a FREE SEMINAR for unbiased views from experts on how the off-payroll legislation will affect your company.

We are bringing together prominent industry figures from EY, Qdos and FCSA who will share their knowledge, insights and expertise to help you prepare for the changes.

This is your chance for open, honest and truly independent discussion with leading experts – so come along and bring with you all the questions that you dare not raise with HMRC.

This event is a must-attend for senior professionals from the UK's leading recruitment businesses. This event is for recruitment business only and places are limited. Booking is essential and early booking is advised.

How to register

Manchester Event - Register Now >
London Event - Register Now >

Recruitment Agency Expo Birmingham 2019

2nd & 3rd October 2019
NEC Birmingham

What does the future of recruitment look like? How is our industry evolving? Once that future does arrives, will you be ready to thrive? Discover the answers to the industry’s biggest questions by attending the next Recruitment Agency Expo in Birmingham.

A bi-annual event shared and attended by an entire industry and all its supporting services. Over the course of two days more than 3000 senior figures come together to listen to recruitment’s most important voices. Fresh ideas are shared. Innovative products and services are given a platform. Recruitment professionals are offered free access to the biggest networking event of the year.

FCSA are proud to once again be a Partner for this expo and don't forget to visit us on stand 32.

Register Now >

TALiNT For Their World Leaders In Recruitment Conference 2019

Tuesday, 29th October 2019
Natwest Conference Centre, London

FCSA are delighted to be partnering with TALiNT for their World Leaders in Recruitment Conference.

World Leaders in Recruitment is regarded as one of the highest-profile events in the industry. It returns this October to provide HR and recruitment professionals with rare access to some of the industry’s top thought leaders combined with business-critical content and analysis.

This one-day conference has an excellent line-up of keynote speakers including FCSA’s chief executive, Julia Kermode as well as James Reed, Peter Searle, Bev White and Sharron O’Donnell to name but a few.

For more information and details of how to book, visit the TALiNT World Leaders in Recruitment Conference website >


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