Onshore Employment Intermediaries 2014
In April 2014, the onshore employment intermediaries legislation (often referred to as the agency legislation) was enacted, with the intention of bringing an end to ‘false self-employment’. The legislation has put the burden on the agency supplying the self-employed subcontractor to prove their employment status. Where the self-employment is not found to be genuine and the subcontractor is deemed to be an employee, the agency will be liable for the unpaid taxes.
The legislation dictates that where a subcontractor is under the supervision, direction OR control (or the right of), either contractually or in the manner in which they carry out their services, PAYE tax and National Insurance contributions must be accounted for. The legislation has also brought in a reporting requirement for all agencies to show how they are paying the subcontractors they supply.
How can Bishopsgate help?
With the assistance of our tax advisers, Accountax, Bishopsgate have devised a compliance process which ensures self-employed subcontractors are engaged compliantly. Through the use of an employment status control test and supply chain transparency, Bishopsgate are able to provide peace of mind to agencies, which can be underwritten through the use of our NIC losses insurance. This provides financial backing in the event of an employment status review, covering unpaid taxes, expenses and professional fees, should HMRC successfully argue that a subcontractor is an employee. For more information on how you can be protected, please fill out the form below.
Travel and Subsistence Legislation
As of 6th April 2016, any worker that is employed by an umbrella company is no longer eligible to claim home to work travel and subsistence expenses if they are under the supervision, direction or control of the end client, or are essentially working inside IR35. The change comes due to attempts made by HMRC to clamp down on the incorrect use of overarching contracts of employment being utilised by umbrella companies, which enables workers to claim home to work expenses, a luxury not afforded to permanent workers. The benefit has been deemed unfair and as such, restricted to those who are not under any form of supervision, direction or control.
Supervision, Direction and Control
In order to determine whether a contractor is able to claim home to work travel and subsistence expenses, it is important to understand the meaning of 'supervision, direction or control'. Whilst there is no legal definition of the meaning of SDC and no case law to look to, HMRC have provided guidance and examples on this area, and the terms should be looked at in their "normal" meaning.
This will be evident where it is necessary for the worker to be watched or overlooked whilst they are completing work, to ensure it is done correctly. Supervision can also be demonstrated by an assistance with developing skills and knowledge.
If a worker is told that they must do their work in a certain way, then they will be deemed to be under direction. If the project is coordinated for the worker and instruction and guidance is given, they will fall foul of the SDC rules.
Control over a worker is present if there is a right to move them from one job to another. Control can also be seen as a worker being told to change how they are carrying out the job
If just one (not all) of the above is evident, then the worker will be caught by the Travel and Subsistence legislation and will not be eligible to claim home to work expenses. These views are however, open to a degree of interpretation.
Managed Service Company
What is an MSC?
A Managed Service Company (MSC) is a company that is run by a third party who influences the payments to the worker(s), as well as controlling the service provided. As the third party essentially takes on the director’s responsibilities, the worker is not genuinely self-employed and therefore should be subject to full rates of income tax and national insurance.
As a result of this loophole, the MSC legislation was brought in to ensure that all income received via this company structure is paid as deemed salary.
The key points that define an MSC provider are:
- Financially benefits from the provision of the workers services via a percentage of the contract income or a fee when the contractor works
- Influences the service provided by the worker by arranging the contract between the company and the client and negotiating rates
- Controls the way the workers are paid by having access to the company bank accounts and calculates payroll, dividends and expenses to instruct the contractor how much to withdraw
If the MSC doesn’t adhere to this legislation and pay taxes in full, HMRC can transfer the debt to other parties involved such as individual directors, entities who helped form the MSC and those who facilitated the arrangement.
To be deemed as a 'third party' you only have to be 'reasonably' expected to know about the service being provided. This includes agencies who have an approved supplier list, so it is also important for agencies to know who they are working with and how they deal with MSC legislation.
The Munnelly Group Plc together with our subsidiaries is committed to protecting and respecting your privacy, to provide you with an informed choice when providing your personal information. The Munnelly Group Plc strives for full compliance in accordance with the European Union’s General Data Protection Regulation (GDPR). GDPR enumerates a number of Rights of Data Subjects which we respect as your rights. Reference to “we”, “us”, “subsidiary”, “Group”, “our” and / or “Munnelly” is a reference to the Munnelly Group Plc and its subsidiaries from time to time.
This policy explains:
• When and why we collect personal information about people who visit our website.
• Products and services this policy covers.
• What information we might collect from you and store.
• How we get your consent for the collection and storing of your information.
• How we use that information and the conditions under which we may disclose it to others.
• Your rights and choices with respect to your information.
• How we protect your information to keep it secure.
• How to contact us directly with questions.
We may change this policy from time to time so please check this page occasionally to ensure that you’re happy with any changes. By using our website, you’re agreeing to be bound by this policy. Any questions regarding this policy and our privacy practices should be sent by email to email@example.com or by writing to the Company Secretary, Munnelly Group Plc, Munnelly House, 84-88 Pinner Road, Harrow HA1 4LP.
Who are we?
Our Group operates within the construction and infrastructure sector providing a range of services to companies working in and with the construction and infrastructure industry. The Munnelly Group Plc is registered in England and Wales and has registered number 05475234. The registered office is Munnelly House, 84-88 Pinner Road, Harrow HA1 4LP.
How do we collect information from you?
We obtain information about you when you use our website, for example, when you contact us about our services, or if you sign up to receive information from us via the consent form located on our website or otherwise. What type of information is collected from you? We may collect information on our email campaigns, such as whether you have read an email sent by us, when and how many times. We will use this information to improve content and services and to inform groups of users about relevant products and services.
The personal information we collect might include your name, job title, address, email address, data of birth, national insurance number, IP address, and information regarding what pages are accessed and when. If you sign up to an event hosted by us that requires payment, your card information is not held by us, it is collected by our third-party payment processors, who specialise in the secure online capture and processing of credit/debit card transactions, as explained below. How is your information used?
We may use your information to:
• Process an enquiry you have made.
• To carry out our obligations arising from any contracts entered into by you and us.
• Send you communications which you have requested via the consent form.
• Process a job application.
Apart from the above, we will never pass your personal information to anyone else without your consent unless we are obliged to do so: by law and/or pursuant to government or regulatory requests; by a law enforcement agency requesting it in connection with the commission of any offence (once we are reasonably satisfied as to the circumstances surrounding the request); to protect our users and ourselves or to ensure the proper operation of our systems. We review our retention periods for personal information on a regular basis. We are legally required to hold some types of information to fulfil our statutory obligations.
We will hold your personal information on our systems for as long as is necessary for the relevant activity, or as long as is set out in any relevant contract you hold with us. Who has access to your information? We will not sell your information to third parties. We will not share your information with third parties for marketing purposes. Third-Party Service Providers working on our behalf We may pass your information to our third-party service providers, agents, subcontractors and other associated organisations for the purposes of completing tasks and providing services to you on our behalf. However, when we use third party service providers, we disclose only the personal information that is necessary to deliver the service and we have a contract in place that requires them to keep your information secure and not to use it for their own direct marketing purposes.
Please be reassured that we will not release your information to third parties unless you have requested us to do so, or we are required to do so by law, for example, by a court order or for the purposes of prevention of fraud or other crime. Your choices You have a choice about whether or not you wish to receive information from us. Should you change your mind about receiving information from us there will always be an unsubscribe link on any marketing communications. You can also change your preferences by emailing firstname.lastname@example.org.
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We will not contact you for marketing purposes by email, phone or text message unless you have given your prior consent. We will not contact you for marketing purposes by post if you have indicated that you do not wish to be contacted. You can change your marketing preferences at any time by contacting us by email: email@example.com. How you can access and update your information The accuracy of your information is important to us.
If you change email address, or any of the other information we hold is inaccurate or out of date, please email us at: firstname.lastname@example.org, or write to us at: Munnelly House, 84-88 Pinner Road, Harrow HA1 4LP.
Alternatively, you can telephone 0845 075 8484and ask for the marketing department. You also have the right to ask for a copy of the information we hold about you. Security precautions in place to protect the loss, misuse or alteration of your information When you give us personal information, we take steps to ensure that it’s treated securely. Any sensitive information is encrypted and protected. When you are on a secure page, a lock icon will appear on the bottom of web browsers such as Microsoft Internet Explorer.
Non-sensitive details (your email address etc.) are transmitted normally over the Internet, and this can never be guaranteed to be 100% secure. As a result, while we strive to protect your personal information, we cannot guarantee the security of any information you transmit to us, and you do so at your own risk. Once we receive your information, we make our best effort to ensure its security on our systems.
We cannot be responsible for the privacy policies and practices of other sites even if you access them using links from our website. In addition, if you linked to our website from a third-party site, we cannot be responsible for the privacy policies and practices of the owners and operators of that third party site and recommend that you check the policy of that third party site. Transferring your information outside of Europe We will only pass on information about you as an individual (as opposed to aggregate information) to third parties overseas to enable us to perform services requested by you.
If we transfer your information outside of the EU, we will take steps to ensure that appropriate security measures are taken with the aim of ensuring that your privacy rights continue to be protected as outlined in this policy. If you use our services while you are outside the EU, your information may be transferred outside the EU in order to provide you with those services. Sale of business If this business is sold or integrated with another business, your details may be disclosed to our advisors any prospective purchasers and their advisers and will be passed on to the new owners of the business. Review of this policy We keep this policy under regular review. This policy was last updated in May 2018.