EEBS on Trial | Claims for Holiday Pay Rocket
11 September 2018
Get your CIS Payroll best practices, industry news and advice here!
11 September 2018
This summer we have seen first-hand a marked increase in the number of HMRC inspections. Three of our long term clients have experienced routine revenue inspections, and we are delighted to confirm that the arrangements that we have in place for each client has been verified as compliant with all of the current legislation by HMRC. The commitment from ourselves and our clients to get things right continues to pay off. We are proud to have business model that has evolved with legislation over the last 17 years and remains steadfast, providing complete peace of mind to all of our clients.
There is no alternative to a bespoke, individually tailored set up for clients that are monitored and reviewed as part of an ongoing process. Any potential supplier who tells you different is either spinning a cheap line to get your business, or simply doesn’t understand the complexities involved. Merely holding a CSCS card and being registered for the construction industry scheme for example, will most certainly not satisfy the requirements for HMRC compliance.
And if that isn’t enough, it will not be of much surprise to anyone to hear that the number of claims for holiday pay has increased exponentially. After fees were introduced in 2013, in an effort to reduce opportunistic and false claims the number of cases that went to court fell by 68%. Since the Supreme Court declared those fees unlawful in 2017 there has been a massive increase in single tribunals being presented – according to the ministry of justice figures between January and March 2018 the increase was 118%.
This activity has inevitably spread to the construction sector, with the most notable recent case being Wood and Others V I & B Brickwork solutions. Interestingly, Judge Howard focused on the issue of subordination, direction and control as being the determining factor. This is clearly in line with recent tax law developments, and (as predicted by us in earlier articles) appears to be an early adoption of the recommendations of the Taylor reviews proposals to make control the main factor upon which employment status is based, and again confirms that the tribunals will always look at the reality of the engagement. In the case in point Judge Howard determined that the bricklayers in question were workers, and therefore entitled to holiday pay.
If you need advice on your CIS payroll set up, contact EEBS today.