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Budget 2014

Posted 19-03-2014 by phillip

New ‘false self-employment’ legislation

The 2014 budget sets out changes to the agency legislation that comes into effect on 6 April 2014.

What are the main changes?

Agencies will be responsible for ensuring that the worker supplying the service is paid under PAYE unless:

  • the worker is neither controlled, directed nor supervised by any third party OR
  • the worker is paid through a bona fide Personal Service Company (‘PSC’)

This will be the case where the agency is contracting with the end client (ie the user of labour), regardless of the use of any intermediaries.

Where agencies either pay workers as self-employed or engage through intermediaries that do the same, the agency will become liable for the unpaid tax, NIC, penalties and interest.

Agency workers will be presumed to be ‘controlled’ by others unless proven otherwise. Workers will be ‘deemed employed’ where there is control, direction or supervision by any person in the contractual chain.

Agencies will also have to report details of all worker payments to HMRC.

To stop attempts at avoidance, the definition of ‘agency’ will be much more widely drawn as ‘the party who holds the contract with the {end} client.

What should agencies do now?

The simplest path to compliance and to minimise risk, is for agencies to engage workers directly on their own payroll. Redego provide a fully-outsourced specialist temporary worker payroll service for agencies.

Alternatively, agencies should ensure that every umbrella company they contract with is fully-compliant (most importantly, based in the UK where all worker payments are PAYE). Redego has always paid all its workers through PAYE and will now also provide the new reporting data required under the legislation, directly to agencies.

Christmas Updates

Posted 17-12-2013 by Ifan

Express Payments over Christmas

Our Express payment service which gets payment to you by 1pm will not be available during the Christmas Period (27 December – 31 December).

We will process Express Payments again from Wednesday 2nd January 2013.

Christmas Opening Hours

The office will be closed from the 27th of December until the 2nd of January 2014 for phone and expense processing.

Payments will be made on 24, 27, 30, 31 December providing cleared funds reach our bank account by 11.00am and are accompanied by a remittance advice.

Expense Receipts for payments during the Christmas Period

Please send any receipts, and enter corresponding claims, to reach the office by 18 December for expenses to be included on payments between 23 December and 2 January 2014.

Thank you for your support in 2013 and we look forward to working with you in 2014!

UK Recruitment to top pre-recession figures by the end of 4th quarter of 2013

Posted 06-11-2013 by Ifan

UK Recruitment to top pre-recession figures by the end of 4th quarter of 2013

There have been many signs that our economy is on the mend this year, but no signs have been more affirming than recent figures indicating that the recruitment industry is not only thriving, but is set to improve upon pre-recession figures. According to the Recruitment and Employment Confederation’s (REC’s) latest survey, recruitment industry turnover reached £26.5 billion in 2012/13, while growth jumped to 3.1% since 2011/12. Assuming that this trend continues, growth for the industry will increase to 7.3% by 2013/14, 8.3% in 2014/15 and 9.6% in 2015/16. This is a most reassuring improvement over British recruitment industry’s pre-recession peak of £27 billion and achieve a turnover of £28.5 billion by the end of March next year.

The 2012/13 market value of £26.5 billion is comprised of £24.1 billion (91%) from temporary/contract business and £2.4 billion (9%) from permanent recruitment activity. The year-on-year increase in revenue exceeds the 2% growth predicted. This has been achieved via a 12% increase in permanent recruitment volumes and a 2% increase in temporary and contract staffing volumes.

Other key findings from the Recruitment Industry Trends Survey 2012/13 include:

  • The percentage of job-hunters who secured permanent positions through recruitment agencies rose by 12% in 2012/2013 compared to 2011/2012.
  • The previous headline of mass unemployment that has characterised the recession has been replaced with the issue of skills shortage due to the rapid increase in vacancies – what a wonderful problem to have!
  • There are 1.1million agency workers fulfilling temporary roles in workplaces across the UK at any time, about 4% of the total workforce. On average, each consultant working in temp/contract staffing had 32 people on assignment on any given day.
  • Headcount within the recruitment industry increased by just 0.9% to 93,610. This marks the third consecutive annual increase in the number of people working in the recruitment industry, but the new total is still below the pre-recession figure of 108,833 in 2007/08.
  • Commenting on the report, REC chief executive Kevin Green says:
    “The year to April 2013 saw growth for both temporary and permanent recruitment, with the temporary/contract market achieving its highest annual turnover since records began.
    “Recruiters are resilient and in difficult times have been working harder to deliver more for less, to cost-conscious clients. We’ve seen the market mature, with consolidation by large and medium sized businesses acquiring smaller operators, and the remaining small agencies have had to carve out specialist niches in order to survive.

    “As the recovery gathers pace, the difficult restructures that firms have put themselves through, including significant numbers of branch closures, could begin to deliver impressive dividends. As revenue grows, efficiencies will deliver margin improvements and increased profit. This is why we have upgraded our growth forecast to 7.3% by the end of this year and are predicting even greater acceleration in the following two years.”

    We at Redego Umbrella welcome this latest trend and hope that British employment will continue to prosper.

    Redego Consultant Prize Draw

    Posted 28-08-2013 by Ifan

    Tags: , ,

    From today until the 26th of September, every contractor that signs up to Redego will earn their referring consultant an entry into our prize draw. Each consultant may have multiple entries with no upper limit, so while the winner is chosen at random, more referrals translates into an increased chance of winning.

    The lucky winner gets to choose between a brand new Apple iPad 4 with retina display, or a Sony Xperia Z with inbuilt wifi, camera and graphics card.

    The winner will be announced on the 27th of September.

    New smartphone app – send in your mileage claims and fuel receipts by text!

    Posted 07-05-2013 by Ifan

    As you currently submit mileage claims and send your fuel receipts by post, to make life easier we’ve developed a smartphone app to help ease the administration

    If you have an Android phone (2.2 or above) or an iPhone you can download the app for free and submit your fuel receipts from your phone. Rest assured the iPhone version is coming soon.

    This is the first version which we are releasing to our clients. It has been extensively tested, but please let us have your feedback. We’ll be extending the functions soon, so you will be able to send other receipts and enter claims on your phone.

    Submit mileage claims and fuel expenses with our iPhone app

    Submit mileage claims and fuel expenses with our Android app

    Redego Christmas opening times

    Posted 18-12-2012 by Ifan

    The office will be closed from 24 December until 1st January 2013 for phone and email support, and expenses processing.

    Payments will be made on 24, 27, 28, 31 December providing cleared funds are accompanied by a remittance advice. There will be no Express Payments during the Christmas Period.

    Thank you for your support in 2012 and we look forward to working with you in 2013!

    Auto-enrolment on track – Benefit from up to 69% tax relief with your Redego Pension!

    Posted 10-12-2012 by Ifan

    The legislation is designed to encourage more workers to start saving and making contributions for their retirement alongside their employer, which is why the majority of employees will be enrolled.

    The Redego pension scheme is the most effective way for you to get money from contract into personal hands. Taxable pay is exchanged for your investment and so avoids all HMRC deductions.

    Because our scheme uniquely enables you to avoid both employers and employees national insurance contributions, this is far more tax efficient than any existing arrangement you may have in place and makes even short term membership very lucrative indeed for you.

    A scheme tailored to your needs

    With the Redego Group Personal Pension Scheme you benefit from:

    • Up to 69% tax relief at source, even basic rate taxpayers save 39%
    • No set-up fees whatsoever
    • Flexible investment levels, you decide what goes into the scheme each month
    • A fully portable pension (if you leave Redego you are free to continue investing or can transfer without penalties)
    • A wide fund choice so you can choose exactly how your money is invested (you have access to specialist independent advice too).

    Our Independent Financial Adviser partners at ContractorFinancials can also help consolidate any other pensions you may have built up elsewhere and this can also be done with no set up fees whatsoever. This means that you can bring any existing retirement nest eggs into one manageable basket. The low annual management cost of the Redego scheme could work out far cheaper than the charges of older style pension schemes.

    Access your pension monies sooner than you think!

    Even with those massive tax savings of up to 69%, Contractors may sometimes still be put off pensions as a savings vehicle because you have to wait until old age to access the funds. However, you could be able to get your hands on the funds sooner than you think though.

    You have the option to release 25% of your pension as a tax free lump sum as soon as you reach age 55 (and still keep working if you wish). This allows Redego clients to fund home improvements, pay off your mortgage or take that trip of a lifetime – literally from money that would have gone to the tax man had you taken a higher salary whilst at Redego.

    Who are ContractorFinancials?

    They are Independent Financial Advisers who specialise in offering financial solutions tailored to the unique needs of Contractors. They work closely with Redego to offer clients a complete financial planning service which also includes advice on other investments, contract based mortgages and protection.

    To find out more about the tax benefits on offer using the Redego Group Personal Pension Scheme call Andrew Gains or Kate Woodhatch at ContractorFinancials on 0845 062 8888 or email andrew@contractorfinancials.com for a no obligation illustration of the benefits.

    Agency branded payroll service that can generate you income!

    Posted 03-12-2012 by Ifan

    Our unique service enables recruitment agencies to convert their payroll function from a cost center into a revenue generator whilst at the same time gaining a state of the art online payroll and expense management system.

    For full details please visit our website.

    Some of the many benefits of our payroll service include:

    Fully managed state-of-the-art online system, branded in your own name.

    Trained support staff for you and your contractors.

    Tax-efficient payments at no cost to your workers.

    Convert payroll from an overhead to a revenue source.

    Increase cash flow by 50% compared to Umbrella Company.

    Clear and simple pay advices for your contractors.

    Same-day faster payments made by us on your behalf.

    Full online management of timesheets, contracts, health & safety, working time management etc.

    All payroll end-of-year forms, tax-code changes, P45s etc are handled by us.

    Eliminate VAT issues in finance, medical and other zero-VAT sectors.

    Our fully managed service requires minimal involvement by agencies. Simply check timesheets and authorise the final payments (all online) and we take care of every other aspect of your payroll.

    Tax savings on legitimate expense claims are shared between the worker and the agency. These savings often exceed the cost of running payroll so many of our clients save money whilst gaining a superior payroll service.

    For more information please read more on our parent company’s website and get a quote by emailing us the number of workers (both permanent and temporary) currently on your payroll.

    Agency Workers Regulations come into force this Saturday.

    Posted 26-09-2011 by Ifan

    The Agency Workers Regulations come into force on 1st October 2011 and mean that temporary workers should have terms no worse than comparable permanent workers with the hirer.

    Redego is providing a framework for auditing compliance with the requirements of the regulations either by proving that the worker has similar or better terms than their equivalent permanent colleagues, or by showing that you or the worker is ‘out of scope’ of the regulations.

    Where neither of the above options are practical or possible, we can offer workers a ‘Pay between assignments’ contract at no extra cost to them or yourselves.

    Redego is also providing online calculators for temporary work agencies to use in determining equivalent pay rates for their workers.

    We can also provide your workers with a free consultation to see if they would benefit by operating through their own Limited company via Tempo Accounting. The legislation specifically excludes contractor who are in business on their own account.

    Are your contractors using Employee Benefit Trusts?

    Posted 20-09-2011 by Ifan

    On the 9th of December 2010, HM Treasury released the Overview of draft legislation for Finance Bill 2011 announcing legislation targeting schemes to pay remuneration through Employee Benefit Trusts (EBTs).

    The legislation will be introduced in the Finance Bill 2011, and become effective from 6 April 2011 onwards. The inclusion of anti-forestalling measures that became effective on the 9th December 2010 mean that from now payments of this type fall within the scope of the new measures.

    The proposed legislation states that sums earmarked by trusts or other intermediaries will be treated as though it is a payment of income that is liable to PAYE tax.

    Because of this ruling we believe that use of an EBT is no longer an option for your contractors.

    If your contractors are using an EBT Company, then they should immediately consider their options as they have now been made a target by HMRC and with the wide ranging MSC legislation this could also prove risky for agencies who are continuing to use these services.

    Be aware that EBT providers are trying to find a quick solution which could represent further danger!

    How can Redego/Tempo Accounting help?

    We will contact your contractors and give them a personalised assessment of their options and the likely impact on their take home pay within a few hours. Click here to request a call back.

    The services that we can supply you, subject to your requirements, will all meet the criteria below;

    • No off-shore ‘tax avoidance schemes’; UK based services only
    • Either limited company or umbrella company services
    • No set up or leaving fees and no minimum contract period
    • Unlimited advice for contractors by specialist consultants and accountants covering many different technical aspects

    Please call 0203 137 64 62 now for a free consultation.