Clarkslegal Law Bites

HMRC guidance sets out that if an employee is working from home due to COVID-19, a homeworking arrangement will exist for this period.
Employees working from home regularly therefore may be able to benefit from certain tax exemptions, although this cannot be where they are working informally. HMRC guidance has confirmed that if an employee is working from home due to COVID-19, the definition of a homeworking arrangement for tax purposes, will be met for this period.
Senior Solicitor Georgia Roberts discusses how employees working from home regularly may be able to benefit from certain tax exemptions.
For specific advice on contractual place of work, please get in touch with our employment lawyers.

On 15 February 2021 HMRC published its policy paper explaining how it intends to help and support organisations which must comply with changes to the off-payroll working rules (IR35). The IR35 rules will apply to all medium and large sized businesses in the private sector with a UK connection from 6 April 2021. The policy paper sets out HMRC’s compliance principles and when HMRC is likely to investigate suspected tax avoidance. It contains examples and helpful links to further HMRC guidance.

HMRC clearly recognises the complexities faced by organisations now having to prepare for IR35 rules. It promises to help “customers trying to do the right thing” and work with those who make genuine mistakes about the employment status of the individuals they contract with through personal service companies. HMRC has reiterated its pledge that in the first 12 months it will not impose any penalties for inaccurate status determination statements, providing that ‘all reasonable care’ has been taken. This penalties exemption will not apply where there is deliberate non-compliance or fraud.

While this supportive compliance regime is to be welcomed businesses should not be complacent. Genuine mistakes will not be penalised but they may not be forgotten either. If HMRC identifies mistakes in the way a business has applied the off-payroll working rules HMRC will expect it to ‘self-correct’. And HMRC may do follow-up checks by reviewing available data such PAYE Real Time Information (‘RTI

Deborah Scales, employment solicitor explains the guidance.

Major changes are happening this April as businesses become responsible for deciding the employment status of the contractors they engage through an agency or the contractor’s own limited company, known as a Personal Service Company or PSC.

Businesses will assume PAYE liability on the payments it makes for the contractor’s services – if it decides the contractor is really a ‘disguised employee’ rather than a genuinely independent contractor. These businesses will be known as the ‘fee-payer’.

These changes - known as the Off-Payroll Working Rules and sometimes called IR35 - will affect all medium to large private sector companies with a UK connection from 6 April 2021. (IR35 has been in force in the public sector 2017). Many businesses have underestimated how much preparation is needed to be ready for these new rules.

Deborah Scales Employment Solicitor explains how to comply.

Many businesses may sadly have to start selecting some employees for redundancy. Alternatively, managers and HR departments may have to pick up those outstanding performance or conduct issues as furloughed employees return to work. This October 2020 saw two and half times more compared to October 2019.
Amanda Glover, Employment Solicitor at Clarkslegal gives top 10 redundancy tips for employers, to help make the process run as smoothly as possible and ensure employers don't run into any legal difficulties.
Redundancy and reorganisation situations can be difficult for all those involved. Our employment solicitors offer clear and timely tailor-made advice to guide you through the process and have extensive experience advising employers on dealing with redundancies.

The UK Government strictly regulates the immigration of migrant workers to the UK. As a part of its immigration system, it requires companies to have a sponsor licence before they can sponsor non-UK employees.
In this podcast Rebecca Hone and Monica Mastropasqua members of the immigration team at Clarkslegal discuss how to apply for a sponsor licence so you can sponsor foreign workers to come and work in the UK. While touching on some of the post-Brexit implications on the UK’s immigration system.
If you are interested in obtaining a Sponsor License, please contact our immigration lawyers for advice.