Liam Hutton – Page 2 – Duane Morris London

March 26, 2020February 2, 2021 by Duane Morris London

COVID-19 Job Retention Scheme – Update March 26th 2020

By Nic Hart & Liam Hutton

26.03.2020

The UK Government’s COVID-19 Job Retention Scheme is available to any large or small employer. Furlough leave is short term temporary leave. The scheme will cover the cost of wages backdated to March 1 and cover all UK-wide employers with a PAYE scheme.

The government will pay cash grants (grants will be received from HMRC) of 80 per cent of an employee’s wages up to a cap of £2,500, providing the worker is kept employed.

At present the scheme will be open initially for at least 3 months but the government has indicated it will extend it for longer if necessary. There is no limit on the amount of funding available for the scheme.

Government expectation is that the first grants will be paid within weeks and HMRC are aiming to get this done before the end of April. There are no existing systems set up to facilitate payments to employers at this time.

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March 20, 2020February 2, 2021 by Duane Morris London

COVID-19: Introduction of ‘Online Isolation Notes’

By Nic Hart & Liam Hutton

20.03.2020

The Government has announced that Isolation notes will provide employees with evidence for their employers that they have been advised to self-isolate due to coronavirus, either because they have symptoms or they live with someone who has symptoms, and so cannot work.

For the first seven days off work, employees can self-certify so they don’t need any evidence for their employer. After that, employers may ask for evidence of sickness absence. Where this is related to having symptoms of coronavirus or living with someone who has symptoms, the isolation note can be used to provide evidence of the advice to self-isolate.

The government says the notes can be accessed through the NHS website and NHS 111 online.

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March 19, 2020February 2, 2021 by Duane Morris London

COVID-19: UK Government Postpones IR 35 Reforms until 6 April 2021

By Nic Hart & Liam Hutton

19.03.2020

As part of the UK Government’s emergency measures to tackle the effects of the coronavirus crisis on the UK economy, it announced on 17 March 2020 that the implementation of new regulations subjecting ‘medium and large’ companies to the off-payroll working rules have been postponed until 6 April 2021.

The Reforms

In July 2019 the Government published draft legislation to the effect that from April 2020, the IR 35 rules would no longer apply where ‘medium and large’ companies in the private sector contract with personal service companies for the provision of workers’ services.

However, this implementation date has now been moved to 6 April 2021 as part of the UK Government’s financial measures in light of the coronavirus crisis.

When eventually implemented, the effect of these changes will be that the IR 35 rules, which place the obligation to assess employment status and operate payroll if appropriate with the personal service companies rather than end user companies, will no longer apply to those entities regarded as ‘medium and large companies.’ Consequently, these end user companies will be subject to an obligation to account for tax and national insurance for workers engaged via a personal service company through PAYE under the off-payroll working rules from 6 April 2021.

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January 11, 2020February 2, 2021 by Duane Morris London

Good Work Plan – Section 1 Statements from 6 April 2020

By Nic Hart & Liam Hutton

11.01.2020

Because of the Governments Good Work Plan, there are some important changes to the obligations on employers on issuing a written statement of particulars of employment, referred to as the ‘Section 1 Statement’. Employers currently often ignore that section.

Below is some advice that we recommend to include in offer letters to avoid confusion and dispute further down the line.