As sponsors of the APSCo Awards for Excellence 2009, SmartWork attended the judging day at the IOD in Pall Mall on the 15th and 16th of October.

The Judges: Don Byrne (Vocalink), Derek McAllan (KPMG), Stephen Peerless, Marilyn Davidson (APSCo – not judging), Phil McMullen (Recruitment Consultant) and Steven English (SmartWork – not judging).

SmartWork’s representative Steven English, was there to meet and greet the finalists as they arrived for their interviews. He will also be handing out the awards at the Venetian Masked Ball taking place at the Intercontinental hotel on the 27th of November, when the award winners will be announced!

For a full list of the awards and nominees (along with pictures) please click here.

SmartWork wishes all of the award nominees the best of luck on the night and look forward to seeing you all there!

October 2009

Following months of speculation and uncertainty, the government has finally confirmed that it is to delay implementation of the Agency Workers Directive (AWD) until October 2011. This is the last possible date under EU law.

The purpose of the AWD is to give 'vulnerable' agency workers some of the rights of permanent workers after 12 weeks.

The trade bodies representing the industry have been lobbying the government hard. In particular, they have said that professional workers, who operate through umbrella companies and have their own limited company, are not vulnerable workers, and clearly do not require the protection of AWD. The government in publishing its draft regulations has proposed that those workers who operate limited companies and operate outside of IR35 regulations should indeed be exempted from the requirements of the AWD.

In a statement made late last week, minister of state for employment relations and postal affairs, Pat McFadden, said:

"Last year the government secured a deal in Europe on the Agency Workers Directive that allows us to base Britain's rules on the agreement reached in the UK between the CBI and TUC.

"This allows us to implement the directive in this country in a way which gives fair treatment to agency workers and maintains labour market flexibility. It was only possible because the government is engaged in the mainstream of Europe actively influencing proposals coming from Europe, which affect the UK economy and UK workers. Careful and sometimes difficult negotiations were required to get the CBI-TUC agreement reflected in the final EU directive.

"As the Prime Minister has said, the government is committed to getting this legislation on the statute book by the end of this parliament. The law will come into force in the UK in October 2011, giving recruiters and their clients time to prepare and plan. We are also mindful of the need to avoid changing requirements on business until the economic recovery is more firmly established."

At the same time the Department for Business, Innovation & Skills has published a consultation (due to close in December) on the draft regulations and the process of implementing the AWD.

SmartWork will continue to monitor developments and participate in industry responses to the consultation.

October 2009

As part of its ‘Spirit of Freelancing’ campaign, the Professional Contractors Group (PCG), which represents the UK’s freelancers, has declared Monday 23rd November 2009 National Freelancers Day! This is a drive to encourage everyone to acknowledge all freelancers, consultants and contractors and the contribution they make to the UK economy.

PCG’s vision is for freelancers to enjoy the optimum environment in which to operate and thrive. As such, National Freelancers Day will highlight five key themes:

• Fair and equitable taxation
• The right to work freelance
• Government to make it easier for clients to engage freelancers
• Recognition that freelancers are in business on their own account
• Freelancing to be respected as a valid career choice and essential ingredient in the success of UK Plc.

John Brazier, managing director of PCG, said: "As National Freelancers Day approaches, we are asking freelancers and client organisations to let us know what freelancing means to them. We would like as many people to get involved to mark the day and capture the spirit of freelancing”.

PCG is urging its members and other freelancers to get involved and send PCG their views on what freelancing is all about, what it means to them and how they would define it.

Freelancers are being encouraged to send an anecdote, a short story, a one-liner, a few words or a single word, a photograph or drawing – humorous or serious - to capture the spirit of freelancing to spirit@pcg.org.uk.

Find out how you can get involved through the link below and find out where your nearest event is taking place.

http://www.nationalfreelancersday.org.uk/cms/get-involved

info@nationalfreelancersday.org.uk

October 2009

The National Minimum Wage (NMW) is a minimum amount per hour that most workers in the UK are entitled to be paid.

Current NMW rates

There are different levels of NMW, depending on your age. The current rates are:

• £5.73 an hour for adults (workers aged 22 and over)
• £4.77 an hour for workers aged 18 to 21 inclusive (often known as the developmental rate)
• £3.53 an hour for young people (often known as the youth rate)

A young worker is someone who is older than mandatory school leaving age and younger than 18.

Future NMW rates

The NMW rate is reviewed every year and any changes take place on 1 October.
The rates from 1 October 2009 will be:

• £5.80 an hour for adults (workers aged 22 and over)
• £4.83 an hour for workers aged 18 to 21 inclusive
• £3.57 an hour for young people

Please contact SmartWork.com on 0800 434 6446 or info@smartwork.com for any further details.

September 2009

PERSONAL HIGHLIGHTS :

• Increase in personal allowances thresholds to £6475 but also National Insurance threshold from £844 a week
• Confirmation of new 50% income tax band on earnings over £150,000 from April 2010
• Restriction of personal allowances for earners over £100,000
• Additional 0.5% National Insurance charge for employers and employees from April 2011
• Reinstatement of higher VAT from January 2010
• Continuation of temporary waiver of stamp duty for properties up to £175,000 until end of December 2009
• Increase in annual allowance for tax exempt pension contributions to £245,000
• Restriction of tax benefits for pension contributions for highest earners
• Continuation of transfer of unused Inheritance Tax allowances with increased threshold of £325,000
• Increases in tax free individual saving allowances (ISA’s) to £10,200
• Introduction of £2,000 car allowance for scrapping old cars
• Petrol duty to rise 2p per litre, alcohol duties 2% and tobacco duties 2%

Alistair Darling confirmed the increases in personal allowances and increases in National Insurance thresholds taking place from 6 April.

Additionally he confirmed the introduction of the new 50% income tax band for earnings over £150,000 due to come into effect from April 2010.Furthermore earners over £100,000 will gradually have their personal allowance withdrawn.

Also confirmed was the Additional 0.5% National Insurance charge for employers and employees from April 2011.

VAT will revert back to 17.5% from January 2010.

As previously announced the annual allowance for tax exempt pension contributions will increase to £245,000 with the lifetime allowance rising to £1,750,000 but there will be a restrictions to basic rate for pension contributions for the earners over £150,000 from April 2010.

The reform to allow spouses and civil partners to transfer unused Inheritance Tax allowances with an increased threshold of £325,000 continues.

We will also see changes and increases in tax free Individual Saving Allowances (ISA’s) with ISA’s limits increasing to £10,200 (£5,100 for cash ISA’s) for over 50’s and everyone next year.

The introduction of a “savings gateway” nationally in 2010 for low income families is also confirmed.

Mr Darling also confirmed the introduction of a £2,000 allowance for scrapping cars over 10 years old up to March 2010.

In other measures, petrol duty will increase by 2p per litre in September 2009 and then by 1p a litre above inflation each April for the next four years. Alcohol duties will go up by 2% from midnight on 22 April 2009 and there is an increase in tobacco duty of 2% from 6pm. These measures will raise more than £6bn for the government by 2012.

SmartWork are proud to announce that they will be sponsoring the APSCo Annual Awards for the second year running!

The APSCo awards celebrate and recognise excellence and outstanding performance across the industry and as such are fiercely contested. Judged by an independent panel of industry experts winning an APSCo award is the highest accolade any professional recruiter can receive.

The awards ceremony will take place at APSCo’s annual Charity Ball in November this year (venue tbc).

January 2009

From the 1st January, ATSCo has broadened its membership to include all companies who recruit ‘business professionals’ on behalf of their clients. Membership is now open to those organisations engaged in the acquisition of business professionals on behalf of their clients, either on a permanent or flexible basis.

To reflect this broadening scope of the association, they have made a slight change to the name, which has become APSCo -The Association of Professional Staffing Companies.
The broader membership will include companies recruiting in the Accountancy, Banking & Finance, Legal, Media and Pharmaceutical, to name but a few sectors.

This decision has been made to reflect the work that APSCo do, which is relevant to the whole of this ‘business professional’ recruitment sector and not just the technology area. The Temporary Workers Directive is an excellent example of this since its focus is on the protection of vulnerable workers, not on professional contractors. The opportunity for a larger membership will give APSCo a louder and even more influential voice in Government!

SmartWork wishes APSCo all the best with its new venture and we look forward to greeting all of the perspective new members that this opportunity will bring!

The European Parliament has voted in favour of adopting the Temporary (Agency) Workers Directive. The Directive, which now has legal effect, and which the UK Government has three years to implement into national law, gives agency workers the same basic employment rights as comparable permanent employees of the end user of their services. These rights include statutory holiday and sick pay, access to training and equal pay but will not extend to occupational benefits.

In the UK, an agreement between the UK Government, CBI and the TUC means that agency workers will be given these rights only after 12 weeks on assignment. The TUC is, however, pushing for early implementation of the Directive. It is likely that the CBI will concentrate efforts on pushing for the Government to use the full three-year implementation period so as to not increase costs for businesses during the current recession.

The implementation of the Directive in the UK is unlikely to stop use of agency workers as a flexible alternative to permanent staff but may change the models agencies use to minimise the impact of the Directive. ATSCo, (Association of Technology Staffing Companies) of which SmartWork is an approved affiliate is working with the UK Government to ensure as far as possible that member agencies in professional sectors are not aversely affected.

For further details of the Temporary (Agency) Workers Directive and to find out about SmartWork’s ATSCo compliant service contact us on 0800 4346446.

October 2008

A limited company contractor has lost an important test case in the High Court and will have a £99,000 tax bill to foot.

Dragonfly Consulting lost its high court appeal against an unpaid £99,000 tax bill.

The decision, which affects all limited company contractors working in the UK, was that Dragonfly director and shareholder John Bessell was working within the scope of IR35 during his contract with The Automobile Association.

The Professional Contractors Group, which had been supporting the applicant in his appeal, expressed disappointment at the decision and would be looking at the judgment "in very close detail to work out its full implications".

The Dragonfly appeal has been seen as a test case for existing IR35 tax defences, which are apparently now in need of review.

September 2008

Following the recent Government consultation regarding tax relief for travel expenses, temporary workers and overarching employment contracts conducted in the summer and autumn of 2008, the Government has announced in the Pre Budget Report (PBR) under the heading “Helping People Fairly” that it has decided to leave the current rules unchanged.

The PBR also goes onto to say that “in the light of evidence from the consultation confirming poor levels of compliance in this area HMRC will refocus its efforts to ensure that the current regime is properly applied”.

As a company that has always worked within HMRC guidelines to ensure accurate recording and claiming of expenses and requires all expenses to be fully receipted, SmartWork welcomes the governments initiative to ensure that the correct compliance checks are carried out on all umbrella companies. SmartWork also welcomes the decision to leave the current rules unchanged and the continuing monitoring and compliance that the HMRC will carry out to ensure all umbrella companies enforce employment and tax legislation correctly.

If you would like any further information regarding this, please contact us on 0800 434 6446.

The HM Treasury consultation document published July 2008 follows a statement of intent in this year's Budget to review the sector.

The Government is actively seeking constructive comments and feedback from umbrella companies and employment agencies and the labour market in which they operate, plus responses to the problems identified and solutions proposed . The Government has identified two possible solutions - tackling non-compliance by umbrella companies (including a possible transfer of umbrella company debt to third parties) or the withdrawal of travel expense concessions for umbrella companies - but is inviting alternative solutions. The deadline for all comments to be received is 13 October 2008.

An announcement in response to the HM Treasury Tax Relief for Travel Expenses consultation document containing details of any new legislation is anticipated in the forthcoming Pre-Budget Report to be published in late 2008. Any new legislation announced is expected to become active from the next financial year commencing April 2009.

For further information, please see the link below :

http://www.hm-treasury.gov.uk/consultations_and_legislation/travel_expenses/consult_travel_expenses.cfm

Chancellor of the Exchequer Alistair Darling delivered the 2008 Budget on Wednesday 12th March 2008. A selection of the key issues which impact on the individual are summarised below:

• New 20% Income tax replaces the current 10/22% rate
• Increase in personal allowances
• National Insurance threshold increase from £670 to £770 a week
• Income splitting legislation proposals deferred to 2009
• Increases in tax free individual saving allowances (ISA’s) to £7200
• Capital gains tax changes to standard 18% with entrepreneur relief at 10% for first £1m of lifetime gains
• Non-domiciled taxpayers charge of £30,000 introduced from 6 April for those who have been resident in the UK for 7 years or more.
• Postponement on stamp duty on shared ownership houses until people own 80% of their home
• Continuation of transfer of unused Inheritance Tax allowances with increased threshold of £312,000
• Delay in 2p rise in fuel duty for six months
• Increases in taxes on alcohol and tobacco, 4p on beer, 3p on cider, 14p on wine, 55p on spirits, 11p on 20 cigarettes, 4p on five cigars, 11p on 25 grams of rolling tobacco, 6p on pipe tobacco
• Major reform of car tax from 2009 with first year regime for new cars, high polluting cars will be forced to pay more tax
• Air passenger duty scrapped in favour of flight tax

To read more on the 2008 Budget , click the links below :
FT budget 08 microsite

Times budget 08 microsite

Telegraph budget 08 microsite

News budget 08 microsite

Chancellor’s budget 08 speech

The 2008/09 Tax Year commences on the 6th April 2008

• New Personal allowances will start from April 6th including your savings allowances
• If you haven’t used your tax free savings for the 20007/08 tax year, try to utilise them before it is too late!
• Statutory sick pay increases to £75.40 per week
• SMP/SPP/SAP increases to £117.18 per week

Click here to download SmartWork’s Tax Tips Calendar 2008/09.
Click here to download SmartWork’s  Tax Allowances Overview

• In the notes that accompany the Budget speech it has been announced that the HMRC will be monitoring Umbrella companies and looking at their dispensations.  SmartWork holds a dispensation from the HMRC and retains evidence of all expenses claimed for full compliance.

From March 1st 2008, after registering as a sub-contractor with the HMRC’S Construction Industry Scheme (CIS), SmartWork joins the few umbrella companies allowed to provide a PAYE Umbrella service to contractors working in the Construction Industry. Contractors wishing to work on a PAYE basis  in the construction industry via SmartWork will now be entitled to the full employee benefits of being a SmartWork employee including access to the Corporate gym membership, company pension and childcare voucher scheme.

• PAYE Umbrella online forum and ratings vehicle, Umbrella Supermarket, has formally endorsed SmartWork  (ranked as one of the Top Ten PAYE umbrella companies) as a compliant and ethical payroll umbrella company.
  
  

• SmartWork is proud to be sponsoring The Association of Technology Staffing Industry Awards  2008. The Awards recognise agencies in the IT, Telecom & Engineering Sectors for their Professional Values and Innovation.