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SEMINARS – Travel and Subsistence: The Changes

We now have more detail on how the changes proposed to T&S in the Budget and the Autumn Statement will affect your business.

Beware of seemingly easy fixes!

You’ve probably been bombarded with emails and phone calls offering you a magic fix for when the rules change on 6 April 2016, e.g. that a provider could:

~audit or manage your supply chain and/or

~help you to retain payroll savings and hence margin.

BUT, unless the provider is also a time traveller, you should know that they can’t know the future. Whilst draft legislation is now available, it’s still subject to further consultation. It won’t be finalised until February 2016. Any solutions marketed now could therefore still be blocked by the final legislation AND, under anti-avoidance rules, any attempt to avoid the new legislation will actually trigger it, even for genuine commercial reasons.

So, there’s no magic pill. That’s why we aren’t suggesting one. What we are suggesting is that you know what’s coming. Forewarned is forearmed.

It’s happening!

Well, we said it would be a game changer and it is. Labour supply and the use of labour in the UK is changing. There’s no time to delay. To be ready you need to start making changes to your business now!

The Government confirmed in its Autumn Statement that it will be implementing – in April 2016 – its proposals to remove tax relief on home-to-work travel and subsistence.  This will be the case for:

~  any workers employed through an employment business or umbrella if anyone can control how that person works (even if they don’t actually exercise such control in practice).

~ workers providing services through a personal service company where the relationship between the worker and either the umbrella, appointment business or end-user has the hallmarks of employment (even ignoring control).

Don’t forget that also from 6 April 2016, the payment of any expenses involving salary sacrifice style arrangements will be liable to PAYE and NIC. Some employees may be able to claim tax relief but neither the employee or employer can benefit from a reduction in national insurance.

Prepare yourself and your business

~ “Employers”, who may already be struggling to get to grips with the economic consequences of the National Living Wage, need to now also factor in the implications of these changes: Both legal and financial.

~ Workers will need to be advised about the consequences for them and their pay-packet!

~ End Users should be ready for their labour suppliers to approach them, seeking to renegotiate terms. End Users also need to understand how the changes could “bite” them directly in certain circumstances.

~ Larger employers need to be concerned about the Senior Accounting Officer Rules and the new rules on publicising their tax strategies. These rules are also likely to be applied to smaller companies in the not too distant future.

~Directors also need to be aware that they could receive a personal liability notice transferring companies’ underpaid liabilities to them personally.

These changes add to the general “policy push” towards companies being fully aware of, and to some extent also responsible for, their supply chains: whether for labour, goods, or other services.

Those adopting the ostrich-approach beware! Tenderers and upstream suppliers won’t be ignoring these issues, so your business can’t ignore them either.

This stuff is hard to understand. It is complicated. But we’re here to help, to make things as clear as we can, and to provide unbiased advice (we don’t supply labour, so can provide the best solution for you rather than a packaged, off-the-shelf solution.)

Come; listen; learn; meet like-minded people and get yourself and your business ready.

Who should attend?

~ You! If you’re a manager, owner or finance director in a recruitment business.

~ You! If your business uses temporary labour.

~ You! If you’re an umbrella or offer accounting services to this sector.

Why you should attend?

Like it or not, this is going to happen.  Resilience and adaptability are key to your business’s survival.  Get yourself and your business ready to adapt ASAP.

The speakers

Simon Whitehead, Partner, HRC Law LLP. Simon is a solicitor with years of experience working in the recruitment sector, dealing with issues surrounding the status of workers and contractors. He’s well-versed in the problems those in the industry face and understands the legal and practical implications for them and for their end users.

Sue Ollerenshaw, Efficient Employment Tax Solutions Limited. Sue has over 25 years’ experience working for Big 4 and Group A accounting firms, advising employers on all aspects of employment tax, PAYE, NIC and the CIS.   She has implemented procedures to comply with HMRC’s Senior Accounting Officer Rules and has, together with Simon, been involved in a number of Government Consultation processes including recent ones on: intermediaries legislation including onshore and offshore; tax relief on travel & subsistence expenses; and tackling avoidance including IR35 and the use of personal service companies.

How to book:

All bookings should be made via Eventbrite (whose booking fee applies) using the links below.

We are running four sessions, each at a cost of £75 plus VAT per attendee.

Dates, times, locations and links to the Eventbrite booking pages are as follows:

Friday 15th January 2016, morning session: 9 am registration for 9.30am start until 12.30.  HRC LLP Manchester Offices, Brook House, 64-72 Spring Gardens, Manchester, M2 2BQ.  Book here.

Friday 15th January 2016, afternoon session: 1.30 for 2pm start until 5pm.  HRC LLP Manchester Offices, Brook House, 64-72 Spring Gardens, Manchester, M2 2BQ.  Book here.

Tuesday 19th January 2016, 9 am registration for 9.30am start until 12.30. Lea Marston Hotel, Lea Marston, Sutton Coldfield, B76 0BY.  Ideal for businesses in the Midlands!  Book here.

Thursday 28th January 2016, 1 pm registration for 1.30pm start until 5pm.  Public Relations Centre, 52-53 Russell Square, London, WC1B 4HP.  Book here.

We look forwards to seeing you at one of these events!  Places are limited so do book ASAP!

Should you require further information about any of these events, or the issues relating to them, please call Stephen on 0161 358 0545.  If he doesn’t know the answer himself, he’ll direct you to someone who does.  Alternatively, you can email us at: contact@hrclaw.co.uk.