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Professional Employer Organisation for Recruitment Agencies in the UK

IR35 Rules

Last Friday HMRC published a suite of Employment Status Manuals which provide additional guidance on the application of new IR35 rules. An important part of the guidance was that, whilst we previously understood the rules to apply to all payments made after 6th April 2020, we now know that the rules apply only to payments for services provided on or after 6th April 2020. 

This will allow contractors to receive their payments as normal for work carried out in March and early April. A summary of all the new guidance can be found here:

Employment Status

Matthew Taylor, the brains behind the Good Work Plan, announced this week that the industry needs to do more to clarify “Employment Status”. In the past few years, progress has been made to align the rights of workers with employees, but still more can be done to reduce misclassification of status which is the most widespread and deliberate way of denying people their rights.

 In his address to The Resolution Foundation this week he confirmed that it is his priority to strengthen, simplify and align the rules on employment status. Read more here: 

Professional Employer Organisation for Recruitment Agencies in the UK

Brexit

As mentioned last week, whilst plenty of guidance has been distributed as to the effect of Brexit on EU citizens living in the UK, not too much has been confirmed about job seekers coming to the UK. One thing we do know is that there will be a minimum salary cap on those entering the UK to work, which is currently set at £30k. 

Many argue that this is too high as it will not capture key staff such as nurses and teachers, including the Migration Advisory Committee (a public body which advises the government on migration issues) who have this week recommended this cap is reduced to £26.5k. Read more about the other criticisms of the £30k cap here:

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