false self-employment and how it could affect you
TRANSCRIPT
False Self-Employment
Meet the panel
Dawn Campion Contracts Director
Andrew McNeilis COO
Gail Brown Head of Compliance
•Introduction to Phaidon International
•Background and Proposal
•Consequences and Considerations
Agenda
Background
2013 Budget focuses on tackling the use of Offshore Intermediaries to avoid:
- TAX
- NICs
Challenges by HMRC to indentify liability through current complex structures
Use of onshore intermediaries to facilitate false self-employment
False self-employed started in construction industry
Background
HMRC through new legislation to “level the playing Field” across the recruitment sector
Worker disadvantage - short term increase pay rates, loss of other benefits
Acknowledgment by HMRC of Complexities of the Oil and Gas sector
Background
Strengthening current legislation by removing obligation to prove “personal services” and emphasis placed back on “control, supervision and direction” of worker
Agency/intermediary supplying the worker to end user
PAYE/NIC must be operated, presumption that there is control over the worker
Aimed at false self-employment but has a wider scope
Shift in liability for non payment of TAX and NIC’s
Proposal
Reporting requirements
Not envisaged to disturb the TAX/NICs arrangement of workers providing Services via a PSC; consider
- Conduct of Employment Agencies and Employment Businesses
- Managed Services Companies
- IR35
Effective from 4th April 2014
Proposal
Consequences
Increase focus on compliance aspects, Increase in compliance requirements imposed on workers PSC
• Open up for more reviews or audit • Consideration of manner in which you run your company • Agency Regulations, MSC regulations, IR35 new legislation
Increased requirement of insurances held by workers Further legislation changes in the future Conduct of Employment Agencies regulations reviewed in 2014 Introduction of Penalties
Due Diligence on manner in which workers are supplied outside of employee’s
• RPO
• Intermediaries
• Service Providers
• Consultants
Reporting requirements
Regular Audits
Legislation changes impact not just Onshore/Offshore/False Employment
• Auto enrolment
• AWR
Considerations
Onshore/offshore/False-self employment
Conduct of Agencies
MSC
IR35
Defining true “self-employment status
Useful Websites
Changing Legislation to tackle “false-employment”
Effective 4 April 2014
Reporting requirement
PCS out of scope
Penalties for non compliance
Summary
Dawn Campion – Director of Contracts
+44 (0)207 019 4130
Gail Brown – Group Compliance Manager
+ 44 (0)207 019 4159
Contact Us
Information provided in this document is intended as a general overview of pending new Legislation and relevant at the time of the presentation – 07/03/2014
Phaidon International accepts no responsibility for any loss or action taken from
anyone using this material
There is no requirement on Phaidon to provide further updates.
Disclaimer
Any questions?