Eleven agencies were not following the correct processes when carrying out identity and qualification checks on people they planned to supply for work. EAS acted swiftly, although no workers had been placed yet, to ensure the agencies changed the way they carried out and documented the checks.
Inspectors visited fifty agencies in total as part of a targeted national exercise called Operation Hazard. Towns and cities visited include London, Birmingham and Newcastle-upon-Tyne.
Between these fifty agencies, inspectors found 140 breaches. Many of these offences were relatively minor, however the worst practices identified included:
not agreeing terms with workers before trying to find them work;
not obtaining all the necessary information from the hirer about the job; and
not giving written information to the worker and / or hirer about the assignment such as who was to turn up and do the work, and where they were supposed to be and when.
Employment Relations Minister Lord Young said:
"Agencies in the teaching and childcare sectors should be especially vigilant that they are meeting all of their responsibilities. It is important that children are not put at risk.
"Follow up investigations will take place to make sure that the agencies concerned have acted to change their ways. Agencies that continue to disobey the law could be prosecuted, hit hard with unlimited fines or even banned from operating for up to 10 years".
[ add comment ] | permalink | related link |
( 3 / 20 )One of the significant announcements in the Pre-Budget Report last month was a further increase in national insurance contributions (NIC) which is to take effect from 6 April 2011.
The NIC rates and limits are broadly frozen for 2010/11 at the 2009/10 figures, with a couple of minor exceptions.
An increase in the rates of NIC is proposed from April 2011 with an extra 1% being added to the rates applicable to employers, employees and the self-employed. The main rate of Class 1 (employee) NIC will be 12% and the Class 4 rate will be 9%. The employer rate will increase to 13.8%.
The additional rate of Class 1 and 4 contributions, payable on pay and profits currently in excess of £43,875, will also increase from the current 1% to 2%.
The government has announced that it will protect those at the lower end of the earnings scale by an increase in the point at which contributions become payable. It is therefore expected that employees paying the standard employee rate and earning below £20,000 will pay less NIC overall as a result of the change.
The government had previously announced that NIC rates would increase by 0.5% from April 2011. This further increase of 0.5% will represent a significant increase in costs particularly for employers.
Internet link: HMRC pbrn1
[ add comment ] ( 2 views ) | permalink |
( 3 / 44 )HMRC is giving taxpayers with offshore investments more time to come forward under the New Disclosure Opportunity (NDO). The registration deadline, which was due to expire on 30 November 2009 has been moved to 4 January 2010 as some banks need more time to contact their offshore customers.
HMRC are reminding individuals that the NDO is the last opportunity for taxpayers to obtain ‘favourable terms’ when advising HMRC of offshore investments that they have never reported previously. HMRC are currently in the process of obtaining information from 308 UK banks regarding their offshore customers in an effort to ensure that everyone pays the right tax.
Dave Hartnett, HMRC’s Permanent Secretary for Tax said:
“We know that some bank customers will not be contacted by their banks in good time for the original deadline of 30 November so in the interests of fairness we have decided to extend our deadline by a month to 4 January.
“I strongly urge anyone who has been hiding taxable assets offshore to go on line and register. The NDO is voluntary but from the start of the New Year we will begin to investigate those who were eligible to use the NDO but instead buried their heads in the sand. Don’t let that happen to you.”
“This is a great way to start the New Year – with the knowledge that your tax affairs are in order and the certainty that the penalty will be capped at 10%.”
If you have any questions or concerns in this area please do get in touch.
Internet link: HMRC press release
[ add comment ] | permalink |
( 3 / 40 )Gordon Brown had revised his proposal to withdraw the income tax and NI exemption on employer provided childcare vouchers.
Currently employees are exempt from tax and NIC on childcare vouchers provided by employers. The exemption is available on the first £55 a week of vouchers per employee, as long as a range of conditions are met. Any excess over the £55 is liable to tax and to NIC (both employees’ and employers’ contributions).
In a change to the original announcement Gordon Brown has now said:
‘I have already made clear that no family currently in receipt of tax relief for their childcare vouchers will see any change in the support they receive. But following our discussions I can now also say that we will retain tax relief for new childcare vouchers issued in the future. However, there still remains a concern that a disproportionate benefit is accruing to higher rate taxpayers. So in order to ensure that this tax relief is given on a fairer basis to all families, we will ensure that all taxpayers get the same income tax relief as basic rate taxpayers do currently. This will take place from April 2011 and will not affect those receiving vouchers issued before that date.’
Under the revised proposals it appears that from April 2011, vouchers will not attract the full current tax and NIC exemptions as their tax relief will be restricted to the basic rate. Higher rate taxpayers will be liable to tax on the vouchers at their marginal rate of tax of 20%, being the difference between basic rate of 20% and the higher rate of 40%.
Vouchers issued prior to April 2011 will be unaffected by the change.
Internet link: Number 10 website
[ add comment ] | permalink |
( 2.9 / 38 )In the Pre-Budget Report last month, changes were announced to the complex rules for the Special Annual Allowance (SAA) charge which affects those with substantial income who make significant pension contributions. The current rate of the SAA charge is 20% on excess pension contributions. The aim of the charge is to discourage individuals from making significantly higher pension contributions in anticipation of the removal of higher rate tax relief which will occur in 2011.
The main features of the charge are:
•It applies for 2009/10 and 2010/11 to individuals with relevant income in excess of £150,000 in either of those years or the two preceding years and where increased pension contributions have been paid after 22 April 2009.
•The total pension contributions paid exceed £20,000 (the ‘SAA threshold’). A higher threshold of up to £30,000 may be possible depending on the level of contributions in previous years.
•The SAA threshold is reduced by the amount of so-called ‘protected’ contributions which are sums being paid at least quarterly under arrangements put in place before 22 April 2009.
It is now proposed to lower the threshold for triggering the SAA charge by reducing the relevant income limit to £130,000 with effect from 9 December 2009. Individuals will be affected by this if their relevant income in 2009/10 or either of the two preceding years exceeds £130,000. For 2009/10 only, protected contributions will include any contributions paid up to and including 8 December 2009.
The rules will catch one-off contributions made by employers as well as lump sum payments made by the scheme member. In either case the charge is on the individual.
If you think you may be affected by this change in the rules please do get in touch.
Internet link: HMRC pbrn18
[ add comment ] | permalink |
( 3 / 36 )
Calendar
