Business Clinic
HR & RECRUITMENT
LISA GILLESPIE Head of Learning and Development Make UK Lisa has been in the HR industry for 25 years in a number of roles. She holds qualifi cations in law, a post-graduate diploma in HRM, philosophy, psychology and creative writing. In addition she qualifi ed as a practitioner in PRINCE 2 and neurolinguistic programming.
www.MakeUK.org |
lgillespie@makeuk.org
HR updates: IR35 and ERA
AS if we’ve not all had enough change to contend with lately between Brexit, a Cabinet reshuffle and Phillip Schofield’s love life, we now have some quite significant changes to grapple with in the world of HR in April 2020.
Even worse, they are quite dull (unless you are into that sort of stuff) but I’m afraid if you are in business or in HR you need to be prepared.
Let’s start with off-payroll working. No that’s not ‘cash in hand’ for those of you
who remember the days before we all got paid straight into our bank accounts allowing employers and their staff to avoid giving HMRC their cut. This is IR35, the new rules requiring organisations to assess the contractors they use to determine their status for tax purposes. This has applied in the public sector since 2017 - remember that BBC scandal over presenters using Personal Service Companies which meant less tax paid on their humongous incomes? April 2020 sees its roll out across other sectors and you need to prepare.
How? Firstly, do an audit of your contractor workforce. Whilst you will still be able to use contractors who work through limited companies, if their services are provided through an intermediary you may need to take on additional payroll costs such as employers’ national insurance contributions. I’ll be honest, the rules are a bit of a nightmare if you are not familiar with HMRC guidance and the nuances of worker status, so don’t feel you are alone in grappling with the rules. We’ve been running workshops throughout the country and even the
Ultimately, the greatest risk sits with the engaging entity so if you do use contractors and ‘self-employed’ workers, please get your house in order!"
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