have a direct contract with a client/ business provide more than one worker’s services to that client do not directly operate PAYE for these workers
This applies even if you withhold tax under CIS . If you supply labourers to a client and don’t operate PAYE you need to send HMRC the new return. Paying labourers under the CIS scheme doesn’t exempt you from this legislation. Not every employment intermediary has to send HMRC a report. It is only the intermediary who has the direct contract with the business client who should send us the details on the form. The return is straightforward to complete using HMRC’s new online service which you can sign up to use the GOV.UK website. If you haven’t already, you will need to register to use HMRC online services first. More information on the subject of reporting for Employment Intermediaries can be found at GOV.UK.
Improving the operation of the Construction Industry Scheme 11 December 2015
HMRC has published draft regulations on amendments to existing regulations proposed at Autumn Statement 2014 to implement changes to the Construction Industry Scheme (CIS).
At Autumn Statement 2014, the government announced it would implement improvements to the operation of the Construction Industry Scheme. In particular, the government proposed to enable more subcontractors to receive payments without deduction on account of tax by: reducing the threshold for the turnover test from £200,000 to £100,000 where there are multiple partners or directors, from April 2016 simplifying the compliance test to focus on fewer compliance obligations from April 2016, enabling more sub-contractors to receive payments without deduction and to: introduce mandatory online filing from April 2016 mandate online verification, where the contractor checks the sub-contractor’s tax status with HM Revenue and Customs (HMRC) , from April 2017, following implementation of improvements to the service in 2016 to 2017
There was broad support for these proposals which were part of the 2014 CIS consultation package .
HMRC has published draft regulations , together with a draft explanatory memorandum, for a period of technical consultation which will close on Friday 22 January 2016.
Posted Workers Enforcement Directive: Impact on construction industry 4 February 2016
The Government’s response to the consultation on implementing the Posted Workers Enforcement Directive confirms that new regulations will be introduced so that a posted worker in the construction sector can bring an individual claim for unpaid wages for the national minimum wage against a contractor in an employment tribunal. Background In July 2015 the Department for Business, Innovation & Skills published a consultation ‘ Implementing the Posted Workers Enforcement Directive ’.
Posted workers are individuals who are employed in one European Member State but sent by their employer to work temporarily in another Member State before returning home.
The 1996 Posted Workers Directive (96/71/EC) provides a framework so that both businesses and workers can take full advantage of the opportunities offered by the single market. The Directive supports the freedom to provide services across the EU and provides both fair competition for businesses and respect for the rights of the workers.
It entitles posted workers to statutory employment rights in the country they are posted to. These are:
CIPP Policy News Journal
25/04/2016, Page 44 of 453
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