Zeva’s Tax advisor Alan Nolan gives his response to the recent case of Reed v HM Revenue and Customs
The operation of a travel scheme under a salary sacrifice arrangement was the focal point of attention in the recent case of Reed v HM Revenue and Customs.
Having consulted with our team of legal/tax advisors and YOU, our customers, Zeva have developed amendments to our current procedures that will not only implement the regulations, but could save you money.
HM Revenue and Customs (HMRC) issued a statement on 11 July 2011 relating to what it described as a “pay day by pay day tax relief model”.
On the face of it, the statement appears to be a weak attempt at clouding what is a genuinely available by reference to current legislation and case law, in order to prevent a leakage of tax revenues at the expense of the most vulnerable workers in our society – the low paid.
As we all know, there are some major changes in October due to AWD. One of the most significant changes for a company such as ours is the incompatibility of salary sacrifice with AWD. If after twelve weeks there is a comparator permanent wage, expenses taken instead of salary will reduce the temps wage in [ Read more ]
Recently the Recruiter magazine approached Zeva for an opinion regarding the recent Cordant Group decision. This article has been published in their 9th February edition and has also been published online. If you are interested in Zeva’s response to the recent changes in NMW legislation, the online article can be found here
Law brings level playing [ Read more ]
If your agency is registered with the Gangmasters Licensing Authority, you may have just received the latest GLA Brief, Issue 12, January 2011. In it, the GLA confirms the recent changes to Travel and Subsistence Schemes, especially in light of the failure of the Cordant Group appeal.
Zeva would like to reassure its GLA customers that [ Read more ]
In our last bulletin we went through the options open to agencies come 1st January, using umbrella providers that rely on Mobile Worker Schemes. Since then a challenge for a Judicial Review against Vince Cable, the Business Secretary, in relation to the legislative amendment, has been thrown out of court.
Cordant Group loses travel expense battle [ Read more ]
The Mobile Worker Scheme (also known as the HMRC Travel and Subsistence Expenses Scheme) has been operated by some employment and recruitment agencies to take advantage of tax and National Insurance Contributions which relate to travel from home to a temporary workplace.
An amendment to the NMW Regulations is going to make participation in the Mobile [ Read more ]
Due to a tightening on the restrictions regarding travel, subsistence and the national minimum wage, a lot of umbrella companies are making substantial changes to their service, or withdrawing from the umbrella market completely. Some are offering unsuitable subcontractor solutions, which are much the same as cash in hand.
Zeva can report that we are making [ Read more ]
From 1st October 2010, the National Minimum Wage (NMW) is to be increased to £5.93. The question we are being asked daily is how will this affect you the agency, and if we will be raising our minimum umbrella rate, currently set at £7.75?
As you know the minimum umbrella rate is set to ensure [ Read more ]
The construction industry is said to be in complete disbelief after the Office for National Statistics said that business in this sector has contracted by 4.7% in the first quarter of 2011. This figure was later revised to 4% but this has in no way has alleviated any confusion concerning this matter.
n a bid to cut costs on ‘drawn out and costly’ tax procedure inspections HMRC have promised to treat honest traders with a light touch. On the flip side they plan to throw the book out firms suspected of multiple taxes.
During the first 3 months of the year UK unemployment fell by 36,000 according to the Office for National Statistics. After this fall the rate of unemployment now stands at 7.7% but among 16-20 year olds there are one in five young people now out of work. This roughly amounts to 935,000.
After months of uncertainty and numerous construction projects being postponed across the country it would as though things are about to look up. Construction recruitment companies have resumed hiring again in anticipation of a sector bounce back.
In recent weeks HMRC has denied profiting from tax refund delays. Leading accountants have claimed that these delays are becoming more and more widespread and the waiting period for a refund can often take months. This new dispute follows the miscalculation of PAYE liabilities last year which was also well documented through out the media. At the time, this was also denied before the ever sheepish HMRC held their hands up to their mistake.
The construction industry is said to be in complete disbelief after the Office for National Statistics said that business in this sector has contracted by 4.7% in the first quarter of 2011. This figure was later revised to 4% but this has in no way has alleviated any confusion concerning this matter.
n a bid to cut costs on ‘drawn out and costly’ tax procedure inspections HMRC have promised to treat honest traders with a light touch. On the flip side they plan to throw the book out firms suspected of multiple taxes.
During the first 3 months of the year UK unemployment fell by 36,000 according to the Office for National Statistics. After this fall the rate of unemployment now stands at 7.7% but among 16-20 year olds there are one in five young people now out of work. This roughly amounts to 935,000.
After months of uncertainty and numerous construction projects being postponed across the country it would as though things are about to look up. Construction recruitment companies have resumed hiring again in anticipation of a sector bounce back.
In recent weeks HMRC has denied profiting from tax refund delays. Leading accountants have claimed that these delays are becoming more and more widespread and the waiting period for a refund can often take months. This new dispute follows the miscalculation of PAYE liabilities last year which was also well documented through out the media. At the time, this was also denied before the ever sheepish HMRC held their hands up to their mistake.