It’s a new tax year – let the fun commence…

Unlike other annual occurrences, the start of the new tax year rarely feels like something to celebrate. This year is no exception as recruitment businesses, clients and candidates have to prepare for a raft of changes.
 
Apr062017 increase

Here’s what’s new this 6 April:

The Apprenticeship Levy – payable by any business which has (or is likely to have) a pay-roll of over £3 million a year.  As recruiters, this includes anyone you pay via PAYE, including agency workers, contractors, interims, etc.

Businesses will start paying the levy this month, and from May you can put your levy money towards apprenticeships via your digital account.

What to do next?

-          Get up to speed by reading our latest Legal Bulletin.

-          Make sure your team are aware and can talk about the levy with clients – our handy infographic summarises the key points.

-          If you haven’t done so already and are in scope to pay the levy, register with the digital apprenticeship service.

-          Make best use of your levy funds by thinking about the apprenticeships that will work for your business and staff. Our team are ready to guide you through the recruitment apprenticeship options.

-          Watch this space: we’ll provide an update on arrangements in each of the devolved nations shortly.

IR35: off payroll working in the public sector– this affects those individuals you supply to the public sector and who work via an intermediary, such as a personal services company (PSC). From now on you and your client will need to determine the IR35 status of that individual rather than relying on what that individual has told you.

What to do next?

-          Make sure you and your candidates are ready by reading our FAQs in ourLegal Bulletin.

-          Review your terms and conditions in light of the new legislation – you can use the REC’s updated model contracts.

-          Get familiar with HMRC’s digital tool which aims to help determine IR35 status and keep providing feedback to HMRC’s intermediaries’ team and to us.

-          Do not advise your client if they are a public authority (they should know this). There is more information and examples available in HMRC’s technical guidance.

Gender pay reporting – companies with 250 staff or more, will now have to report on the gender pay ratios of those staff (including contingent labour).  You only have to publish this information next year but it will need to refer back to your company’s situation as of 5 April 2017.

What to do next?

-          Listen to the REC’s latest Policy & Legal webinar to learn what you must publish.

-          Refer to the REC’s Legal Bulletin (p7) for more information on who is in scope.

National Minimum and Living Wage rates– yes, this oneactually came into force on 1 Apriland should be old news to you by now. From now on, the rate increases will be every April (and not October as in previous years).

What to do next?

-          Read our NMW guide and FAQs, which we developed with HMRC.

-          Help clients and candidates stay up-to-date by referring to our infographic (feel free to post it on your own social media channels too).

There are far more changes but all the ones you should be aware of were covered by our recent webinar, including flat rate VAT schemes, salary sacrifice and termination payments. Listen again here.

This entry was posted on Thursday, April 6th, 2017 by:

Kate ShoesmithKate Shoesmith - Head of Policy & Public Affairs@shoesmithkate

Kate is Head of Policy & Public Affairs and has been with the REC since March 2013.  She is responsible for policy, stakeholder and member engagement, and influencing for the organisation.  Kate works on our key campaigns including those on Regulation and Tax changes, Diversity, Flexible Working, and Youth Employment & Skills. 

Prior to joining REC, Kate was Head of Policy & Corporate Affairs at City & Guilds. Kate has also been an adviser on a number of external forums, including for Business in the Community’s Workplace Skills Advisory Group, CIPD’s Learning to Work and the UNESCO Education for All Global Monitoring Report.  Kate is also a college governor and a board member for Youth Employment UK