Updates

Changes for Employers following the Autumn 2018 Budget

Changes for Employers following the Autumn 2018 Budget

This Autumn's budget has seen the UK Government introduce changes which will have a significant impact on employers who will now have a larger responsibility to determine the correct tax status for their staff. Since April 2017, it has only been public sector employers who have been charged with the responsibility of identifying who should be treated as employees for the purposes of income tax and national insurance contributions. Now, however, this obligation will also fall upon medium and large scale private employers. No longer should private employers assume they are protected because they are using self-employed contractors engaged through intermediary companies. If these employers do not get things right they will be left carrying the can for the income tax and national insurance contributions which should have been paid to HMRC. Financial penalties are also likely to follow. Significantly, this change will not be introduced…
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When does a ‘self employed’ person become a worker with protected rights?

When does a ‘self employed’ person become a worker with protected rights?

In Pimlico Plumbers Ltd v Smith the Court of Appeal has held that a plumber, who was self-employed for tax purposes, as in fact a worker, entitling him to various employment rights. The Facts of the Case Mr Smith worked as a plumber for Pimlico Plumbers for six years until 2011. He successfully argued before the Employment Tribunal and the Employment Appeal Tribunal that he was a worker for the purposes of employment legislation. Pimlico maintained that he was a "self-employed operative" – which is how he was described in the agreement between Mr Smith and Pimlico – and appealed to the Court of Appeal. The Judgement Whilst Mr Smith had a 'self employed' contract and he filed tax returns and paid VAT on this basis, he was considered a worker…
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