Payroll companies - Revision history

Designing Buildings at 06:47, 25 November 2020

2020-11-25T06:47:54Z

← Older revision		Revision as of 06:47, 25 November 2020
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	* [http://www.constructionenquirer.com/2014/02/20/tough-stance-on-tax-change-stuns-contractors/ Construction Enquirer] 20 February 2014.		* [http://www.constructionenquirer.com/2014/02/20/tough-stance-on-tax-change-stuns-contractors/ Construction Enquirer] 20 February 2014.

−	[[Category:~~Other_legislation~~]] [[Category:~~DCN_Legislation~~]] [[Category:~~Policy~~]] [[Category:~~DCN_Policy~~]] [[Category:Contracts_/_payment]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:DCN_Policy]] [[Category:Other_legislation]] [[Category:Policy]] [[Category:Contracts_/_payment]]

Editor at 14:03, 6 May 2020

2020-05-06T14:03:28Z

← Older revision		Revision as of 14:03, 6 May 2020
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	* Hourly rate.		* Hourly rate.
	* IR35.		* IR35.
		+	* IR35: essential steps for compliance.
	* Mixed partnerships.		* Mixed partnerships.
	* Non-productive overtime.		* Non-productive overtime.
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	* [http://www.constructionenquirer.com/2014/02/20/tough-stance-on-tax-change-stuns-contractors/ Construction Enquirer] 20 February 2014.		* [http://www.constructionenquirer.com/2014/02/20/tough-stance-on-tax-change-stuns-contractors/ Construction Enquirer] 20 February 2014.

−	[[Category:Other_legislation]] [[Category:Policy]] [[Category:Contracts_/_payment]]	+	[[Category:Other_legislation]] [[Category:DCN_Legislation]] [[Category:Policy]] [[Category:DCN_Policy]] [[Category:Contracts_/_payment]]

Designing Buildings at 09:34, 11 March 2020

2020-03-11T09:34:07Z

← Older revision		Revision as of 09:34, 11 March 2020
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	There is criticism in the industry that this measure will burden contractors with extra costs at a time when the economic recovery is still very fragile. It has also been claimed that labour costs could rise by 25% and that this will hit sub-contractors on fixed-price contracts very hard (ref. [http://www.constructionenquirer.com/2014/02/20/tough-stance-on-tax-change-stuns-contractors/ Construction Enquirer] 20 February 2014).		There is criticism in the industry that this measure will burden contractors with extra costs at a time when the economic recovery is still very fragile. It has also been claimed that labour costs could rise by 25% and that this will hit sub-contractors on fixed-price contracts very hard (ref. [http://www.constructionenquirer.com/2014/02/20/tough-stance-on-tax-change-stuns-contractors/ Construction Enquirer] 20 February 2014).
		+
		+	In 2018, An employment tribunal ruled that payroll company Hudson Contract Services was a effectively a contractor and so liable to pay the CITB levy. Hudson twice appealed the ruling but was refused on both occasions. On 10 March 2020, Appeal Court judge Lord Justice Underhill said; “Hudson is after all a sophisticated form of labour-only subcontractor, on terms that remove risk in relation to construction activity.”

	= Related articles on Designing Buildings Wiki =		= Related articles on Designing Buildings Wiki =

31.48.193.73 at 10:08, 8 March 2020

2020-03-08T10:08:58Z

← Older revision		Revision as of 10:08, 8 March 2020
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	The government believes that ‘employment intermediaries’, or ‘payroll companies’ have been used to enable workers to falsely claim that they are self-employed sub-contractors when in fact they are permanent, full-time employees. This allows them to reduce their employment taxes and obligations.		The government believes that ‘employment intermediaries’, or ‘payroll companies’ have been used to enable workers to falsely claim that they are self-employed sub-contractors when in fact they are permanent, full-time employees. This allows them to reduce their employment taxes and obligations.

−	Payroll companies charge for this service, typically up to £25 a week, but payments can be as much as £1,250 per year (ref. HM Treasury [https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/264647/Overview_of_legislation_in_draft.pdf Overview of Legislation in Draft] 10 December 2013). It has also been reported that ‘rebates’ are sometimes offered by payroll companies to contractors and agencies that use them (ref. [http://www.constructionenquirer.com/2014/02/19/end-of-road-for-payroll-company-kickbacks/ Construction Enquirer] 19 February 2014).	+	[https://payrollheaven.com Payroll companies] charge for this service, typically up to £25 a week, but payments can be as much as £1,250 per year (ref. HM Treasury [https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/264647/Overview_of_legislation_in_draft.pdf Overview of Legislation in Draft] 10 December 2013). It has also been reported that ‘rebates’ are sometimes offered by payroll companies to contractors and agencies that use them (ref. [http://www.constructionenquirer.com/2014/02/19/end-of-road-for-payroll-company-kickbacks/ Construction Enquirer] 19 February 2014).

	Legislation was introduced in the Finance Bill 2014 to prevent this by treating payroll companies as employers and so requiring that they subject workers to tax and employee National Insurance Contributions (NICs) deductions at source and introducing a new liability to pay employer NICs.		Legislation was introduced in the Finance Bill 2014 to prevent this by treating payroll companies as employers and so requiring that they subject workers to tax and employee National Insurance Contributions (NICs) deductions at source and introducing a new liability to pay employer NICs.

Designing Buildings: Reverted edits by 86.28.124.13 (talk) to last revision by Editor

2020-02-07T12:17:07Z

Reverted edits by 86.28.124.13 (talk) to last revision by Editor

← Older revision		Revision as of 12:17, 7 February 2020
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	* Non-productive overtime.		* Non-productive overtime.
	* PAYE.		* PAYE.
−	* [https://payrollheaven.com Payroll Services]
	* Personal service company.		* Personal service company.
	* TUPE Regulations.		* TUPE Regulations.

86.28.124.13 at 11:59, 7 February 2020

2020-02-07T11:59:55Z

← Older revision		Revision as of 11:59, 7 February 2020
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	* Non-productive overtime.		* Non-productive overtime.
	* PAYE.		* PAYE.
		+	* [https://payrollheaven.com Payroll Services]
	* Personal service company.		* Personal service company.
	* TUPE Regulations.		* TUPE Regulations.

Editor at 15:29, 27 March 2019

2019-03-27T15:29:30Z

← Older revision		Revision as of 15:29, 27 March 2019
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	* Construction industry scheme.		* Construction industry scheme.
	* Gangmaster.		* Gangmaster.
		+	* Good Work Plan promises clearer contracts, fairer rules
	* Hourly rate.		* Hourly rate.
	* IR35.		* IR35.
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	* Umbrella companies.		* Umbrella companies.

−	=== External references~~. ==~~=	+	= External references =

	* HM Treasury [https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/264647/Overview_of_legislation_in_draft.pdf Overview of Legislation in Draft] 10 December 2013.		* HM Treasury [https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/264647/Overview_of_legislation_in_draft.pdf Overview of Legislation in Draft] 10 December 2013.

Editor at 14:34, 18 October 2018

2018-10-18T14:34:29Z

← Older revision		Revision as of 14:34, 18 October 2018
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	There is criticism in the industry that this measure will burden contractors with extra costs at a time when the economic recovery is still very fragile. It has also been claimed that labour costs could rise by 25% and that this will hit sub-contractors on fixed-price contracts very hard (ref. [http://www.constructionenquirer.com/2014/02/20/tough-stance-on-tax-change-stuns-contractors/ Construction Enquirer] 20 February 2014).		There is criticism in the industry that this measure will burden contractors with extra costs at a time when the economic recovery is still very fragile. It has also been claimed that labour costs could rise by 25% and that this will hit sub-contractors on fixed-price contracts very hard (ref. [http://www.constructionenquirer.com/2014/02/20/tough-stance-on-tax-change-stuns-contractors/ Construction Enquirer] 20 February 2014).

−	~~= Find out more =~~	+	= Related articles on Designing Buildings Wiki =
−		+
−	=== Related articles on Designing Buildings Wiki ===	+

	* Construction industry scheme.		* Construction industry scheme.
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	* IR35.		* IR35.
	* Mixed partnerships.		* Mixed partnerships.
		+	* Non-productive overtime.
	* PAYE.		* PAYE.
	* Personal service company.		* Personal service company.

Designing Buildings at 13:31, 20 June 2018

2018-06-20T13:31:18Z

← Older revision		Revision as of 13:31, 20 June 2018
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	* PAYE.		* PAYE.
	* Personal service company.		* Personal service company.
		+	* TUPE Regulations.
	* Umbrella companies.		* Umbrella companies.

Editor at 18:24, 18 June 2018

2018-06-18T18:24:17Z

← Older revision		Revision as of 18:24, 18 June 2018
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−	The government believes that ‘employment intermediaries’, or ‘payroll companies’ have been used to enable workers to falsely claim that they are self-employed sub-contractors when in fact they are permanent, full-time employees. This allows them to reduce their employment taxes and obligations. Payroll companies charge for this service, typically up to £25 a week, but payments can be as much as £1,250 per year (ref HM Treasury [https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/264647/Overview_of_legislation_in_draft.pdf Overview of Legislation in Draft] 10 December 2013). It has also been reported that ‘rebates’ are sometimes offered by payroll companies to contractors and agencies that use them (ref [http://www.constructionenquirer.com/2014/02/19/end-of-road-for-payroll-company-kickbacks/ Construction Enquirer] 19 February 2014).	+	The government believes that ‘employment intermediaries’, or ‘payroll companies’ have been used to enable workers to falsely claim that they are self-employed sub-contractors when in fact they are permanent, full-time employees. This allows them to reduce their employment taxes and obligations.
		+
		+	Payroll companies charge for this service, typically up to £25 a week, but payments can be as much as £1,250 per year (ref. HM Treasury [https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/264647/Overview_of_legislation_in_draft.pdf Overview of Legislation in Draft] 10 December 2013). It has also been reported that ‘rebates’ are sometimes offered by payroll companies to contractors and agencies that use them (ref. [http://www.constructionenquirer.com/2014/02/19/end-of-road-for-payroll-company-kickbacks/ Construction Enquirer] 19 February 2014).

	Legislation was introduced in the Finance Bill 2014 to prevent this by treating payroll companies as employers and so requiring that they subject workers to tax and employee National Insurance Contributions (NICs) deductions at source and introducing a new liability to pay employer NICs.		Legislation was introduced in the Finance Bill 2014 to prevent this by treating payroll companies as employers and so requiring that they subject workers to tax and employee National Insurance Contributions (NICs) deductions at source and introducing a new liability to pay employer NICs.
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	It is considered that this will have the greatest impact on the construction sector, where around 200,000 workers are thought to be employed through onshore employment intermediaries. These workers will face higher tax and NICs liabilities, but will no longer be paying service charges, will gain statutory payments such as statutory sick pay and maternity pay, some will be eligible for the national minimum wage and they may become eligible for other employment rights.		It is considered that this will have the greatest impact on the construction sector, where around 200,000 workers are thought to be employed through onshore employment intermediaries. These workers will face higher tax and NICs liabilities, but will no longer be paying service charges, will gain statutory payments such as statutory sick pay and maternity pay, some will be eligible for the national minimum wage and they may become eligible for other employment rights.

−	There is criticism in the industry that this measure will burden contractors with extra costs at a time when the economic recovery is still very fragile. It has also been claimed that labour costs could rise by 25% and that this will hit sub-contractors on fixed-price contracts very hard (ref [http://www.constructionenquirer.com/2014/02/20/tough-stance-on-tax-change-stuns-contractors/ Construction Enquirer] 20 February 2014).	+	There is criticism in the industry that this measure will burden contractors with extra costs at a time when the economic recovery is still very fragile. It has also been claimed that labour costs could rise by 25% and that this will hit sub-contractors on fixed-price contracts very hard (ref. [http://www.constructionenquirer.com/2014/02/20/tough-stance-on-tax-change-stuns-contractors/ Construction Enquirer] 20 February 2014).

	= Find out more =		= Find out more =
Line 15:		Line 17:
	* Construction industry scheme.		* Construction industry scheme.
	* Gangmaster.		* Gangmaster.
		+	* Hourly rate.
	* IR35.		* IR35.
	* Mixed partnerships.		* Mixed partnerships.