Daily Mirror, Page: 28, 29

If you have been affected by the problems at Legitas, here is a quick summary of the benefits of working with Zeva together with some of the key features associated with PTR+ which is a service specifically designed for low-paid workers.

Typical savings available are shown here

Contact Zeva on 0808 168 2772 for more information
or email queries to: agencysupport@zeva.co.uk

If you have been affected by the problems at Legitas, here is a quick summary of the benefits of working with Zeva together with some of the key features associated with PTR+ which is a service specifically designed for low-paid workers.

Typical savings available are shown here

Contact Zeva on 0808 168 2772 for more information
or email queries to: agencysupport@zeva.co.uk

A link to the judgement can be found here
http://www.bailii.org/uk/cases/UKFTT/TC/2013/TC02622.html

Zeva offer UK based CIS solutions, for those who wish to avoid the debt transfer risk, inherent in offshore companies.

Zeva are a GLA registered company. Please do feel free to give us a call on 0808 168 2772 for more information or email queries to: agencysupport@zeva.co.uk

Legitas Letter : 15th April 2013

We recently commenced talks with HRMC during which we identified concerns over areas for improvement in relation to the operational practicalities of our current model.

As you might expect as market leader, Legitas has recently been working on the launch of a new and more stringent real time portal. We are therefore currently working with HMRC to set the precise terms of this new model for use across our full client base.

Whilst Legitas and HMRC create and confirm the final terms of the model, in order to best protect both your interests and those of the temp, we have decided to process all temps on a PAYE basis for a short period of time, with immediate effect.

Productive discussions are currently taking place with HMRC and we shall be able to provide further details in due course. We are confident that our new model will provide our valuable clients with a more comprehensive and efficient process for temporary worker payment. We shall, of course, keep you up to date with any further developments as and when they occur.

Yours sincerely,

David Allen
Chief Executive Officer

Please do feel free to give us a call on 0808 168 2772 or email if you have any queries on the above: agencysupport@zeva.co.uk

“I have taken advice on the question of expenses being granted…..and current opinion is that we are not prepared to challenge it breaches the NMW legislation”.

What initially surprised us was his candidness. He openly expressed and discussed the GLA’s obvious difficulty in dealing with tax matters and, in his opinion; the GLA were neither qualified nor funded to do so.

Underlining the fact and obviously frustrated at HMRC indifference, he also revealed that a meeting had already been arranged between himself and recently appointed HMRC head, Lin Homer, former UK Border Agency chief. He stated that at this meeting, he will demand “clear guidelines” surrounding travel and subsistence models and that he would make it clear that this was a HMRC matter, and not one for the GLA to administer.

Furthermore, Mr Broadbent went on to reinforce that the GLA would no longer be the HMRC’s ’strong arm’, bullying legitimate companies who operate legal tax relief models for the benefit of their employees. With a staff of just 66, of which 30 are Members of the Board and a modest annual budget, he believes the GLA’s efforts are better spent elsewhere.

But what was more obvious was his frustration at the failings and misdirection of the previous GLA regime. This was highlighted by his intended re-invention of the GLA, with a new focus on ’serious criminality’.

He continued to outline the future objectives of the GLA, to “Identify and tackle forced labour, and to dismantle and disrupt serious and organised criminality” and that with “New light touch regulation, sectors considered low risk may no longer be covered”

After listening to Mr Broadbent, who spoke very passionately about what he considered to be the “real GLA issues”, we will take him on face value and welcome the GLA’s decision to re-focus their objectives.

In a statement on its website published two weeks ago, FS Commercial noted “the significant financial implications of proceeding with an appeal in the High Court… [which] may have left us exposed financially”

Mr Broadbent of the GLA says this is: “a significant boost to its ongoing battle”.

Is Mr Broadbent suggesting that FS Commercials inability to fund an appeal by judicial review is somehow a GLA success? The accompanying photograph of Mr Broadbent in The Recruiter Magazine would lead you to think so.

As an umbrella company who has held a GLA licence for over three years and experienced the substantial cost of the legal support needed, we are in a unique position to appreciate FS Commercials understandable frustrations, but at the same time a little flummoxed by the ‘jubilant’ air of the GLA’s Chief Executives comments.

It may just be that for businesses unable to meet these costs, this regulated sector has become a ‘no go area’, and that just doesn’t seem a fair and level playing field at all.

	UPDATE: 07/03/2013 Vela Contracting Ltd T/A Zeva, received its renewed licence today
	GLA jubilant as FS Commercial drops challenge to T&S decision

• Our implementation of PTR was disclosed to HMRC in February 2012
• We have to date received no direct comment, notice of underpayment or penalties from HMRC
• We have been GLA registered since 30th April 2010
• Our adoption of PTR was also disclosed to GLA
• We continue to trade under a current GLA licence
• Workers receive savings greater than salary sacrifice for equal qualifying expenses under PTR
• Qualifying expenses increase the Working Tax Credits available to our workers
• PTR is optional, and 78% of our current workers choose to claim tax relief
• Expenses are independently validated and audited.

Having studied the details of the judgement, it remains in my view, and the view of specialist tax advisors and leading counsel, that our interpretation of the relevant legislation remains sound.

In the end, the final decision will be made by judicial review and not by an employment tribunal.

As recommended in the statement, we sought the advice of professional tax experts as well as obtaining leading Counsel Opinion. As expected Zeva’s PTR model is in accordance with current regulations and we believe it to be the only model that works for both high and low paid workers.

So why do the GLA and HMRC continue their tireless propaganda attack on these legitimate models?
We don’t think this is a question of compliance at all.

Example

A NMW employee working a 40 hour week at a temporary place of employment incurring just £10 travel and food expenses per day, applying PTR through Zeva.

Weekly Saving

The amount of £36.50 plus employer’s secondary NIC’s saving of £6.90 makes the potential cost to HMRC rise to £43.40 per week which equates to 86.8% of the expenses incurred. HMRC has no incentive to make it easy for low-paid workers to make their legitimate claim for genuine expenses incurred in the performance of their job.

The fact of the matter is that by eliminating the need for a dispensation, implementation of PTR has just become easier to administer, due to the removal of the qualification criteria associated with day subsistence under the Benchmark system (including auditing).

Zeva currently has the facility to implement an ‘Actuals’ model, calculated on actual expenses incurred’, for the subsistence element of any worker claim. (The only section affected by a dispensation). We recommend (after consulting your tax advisor), that any clients who currently use BSRs, as part of a dispensation, move to an ‘Actuals’ model.

On sign up, prior to starting on site, each employee will be asked to estimate his travelling expenses (including actual subsistence costs) which will be applied each working day. Zeva will ensure that the correct amount of tax relief is applied each week by contacting the employee at least two days before every payment, to confirm the level of his current claim. If his estimate is incorrect, the claim will be amended to arrive at the correct result.

As in the case of BSRs employees will still need to be able to justify the level of expenses, either by retaining receipts or completing a daily record of expenditure.

Zeva already runs ‘Actuals’ for many clients who did not wish to rely on dispensations, or were waiting for a dispensation. This issue is now finally settled, and as any extra administration is already automated within our systems, there should be no effect on the agency in terms of time or costs.