The Chartered Institute of Payroll Professionals
News On Line
With off-payroll working rules coming into effect from 6 April 2021, many Personal Service Companies (PSCs) have sought the services of umbrella companies. HMRC has recognised that there is some confusion over how a contractor would be paid when using this service, therefore have produced additional guidance on this specific area. The guidance aims to provide contractors who are working, or about to work, through an umbrella company with helpful information on what an umbrella company is and what it means for them. HMRC want to help contractors understand how they will be paid, what deductions may be made and what costs the umbrella company is responsible for paying. The guidance also links to further material on spotting tax avoidance and what to do if the contractor or the umbrella company are involved in a tax avoidance scheme or other non-compliant activity.
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CIPP comment
We would welcome your feedback on how this guidance is being received and any ways in which it can be improved so that we can feedback to HMRC. Please email Policy@CIPP.org.uk with any feedback you may have.
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NMW guidance updated to reflect Supreme Court’s ruling on sleep -in shifts 29 April 2021
There has been an update to guidance on paying the National Minimum Wage (NMW) produced by the Department of Business, Energy and Industrial Strategy (BEIS) to include examples relating to sleep-in shifts, following on from the recent Supreme Court ruling on the topic. The Supreme Court’s decision means that the period that a worker spends asleep on a sleep -in shift is not classified as working time for the purposes of NMW regulations, and so NMW only has to be paid for the time that they spend awake and working. It does not have to be applied when a worker is sleeping on shift. Under the title of ‘special situations’, the guidance confirms that this stance alters in scenarios where workers are expected to perform various activities for all, or most of a shift, and only allowed to sleep where possible between tasks. The example of napping when not busy is provided. In these situations, then it would be reasonable to suggest that at least the NMW needs to be paid for the entirety of the shift, including for any time spent asleep.
Employers must provide adequate sleeping facilities for workers in order for NMW rules not to apply. If the correct sleeping facilities are not made available, then the NMW is applicable to the full duration of the shift.
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HMRC webinar: National Minimum Wage – unpaid and expenses only work 5 May 2021
HMRC is delivering a live webinar, which will focus on how the National Minimum Wage (NMW) interacts with workers who are unpaid or who are reimbursed in an ‘expenses only’ capacity.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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