Spring Payroll & Expenses Meetings - Slides & Updates

We were able to sneak in most of the Payroll & Expenses regional group meetings (apologies Wales) in the last few weeks before travel bans and social distancing was implemented.  They were hosted by the lovely Caroline Jones at BDO and she has sent me a copy of the slides which you can find here.

The issues we spent the most time in discussing were not surprising and I've set out below a summary of these as well as potential next steps for BUFDG.  

Off Payroll Working

At the PEGs, most members were worried about the implementation of the new Status Determination Statement and being able to identify who the worker is, particularly in a large supply chain.  Others were concerned that they may use firms that use personal service companies and may be bought into the scope of the rules.  Since the PEGs, the Government has announced a delay to the IR35 implementation for the private sector until April 2021, however, there is no clarification as yet on whether the public sector still need to adopt the new rules on Status Determination Statements and employer led dispute resolution.  We are in contact with HMRC about this issue and hope to receive guidance shortly.

Regardless of the potential delay, at some stage, these issues will need to be looked at and understood.  BUFDG will therefore be producing:

• General guidance document for colleagues who don't know the rules but might need to, such as procurement teams
• Flowchart to help map out processes
• Template Status Determination Statement cover letter/email wording
• Additional information you might want to share with your contractors
• Guidance on your dispute resolution process
• Guidance on how the new rules will affect your supply chains and what your responsibilities are
• Information on contractual terms for contract addendums with, e.g. recruitment agencies
• Implications of how the rules affect overseas workers and what your responsibilities are

If there are any other issues that you think need to be address, please contact me.

International 

Whilst there is now (or will be once re-arranged) a separate International Forum, there is still discussion within the PEGs about the frustrations faced from the international movement of staff.  Most notably, we discussed the importance of senior executive and academic buy in and the hope to increase knowledge amongst their colleagues for homeworkers where the 'home' turns out to be outside of the UK.

Presently, whilst there is unlikely to be a great deal of global mobility there may still be an issue with international homeworkers.  BUFDG will therefore be producing:

• Guidance to improve communications and knowledge with execs/academics for members to share
• Next steps to discovering whether your institution actually has any issues before diving into high risk areas, including whether the Corporate Criminal Offences Act (with unlimited fines) might be bought into scope
• Guidance to set out the implications of allowing employees to work from home, when that home is not in the UK

If you would like to provide any information or particular scenarios for use in the guidance, please email me.

National Minimum Wage

We discussed a number of the changes due to be implemented in April 2020, set out in the slides.  BDO have confirmed that they will be providing BUFDG with a separate (now) webinar with their NMW expert to cover the new rules, common errors and HMRC views, date TBC.

Others

BUFDG will be looking to provide:

• Guidance on the meaning of researcher or volunteer; what happens when gifts are regularly provided
• Exemptions available for expenses and benefits so that the grossed up tax/NIC due under a PAYE Settlement Agreements is not overstated
• Further guidance on the Corporate Criminal Offences Act, when could it apply, who is affected, etc
• Clarification on holiday pay for zero hours or term time only contracts

BUFDG will be working with colleagues, other sector bodies, professional firms, HMRC and other Government Departments to deliver this guidance.  Clearly, some of the above is not important in the scheme of things so we will prioritise areas that we think may have a specific impact in the next few months; homeworkers UK and abroad being first on my list.

If there are any issues you would like raised, problems you are facing, common scenarios, workarounds, helpful guidance for your fellow members, please do post on the discussion boards or contact me directly.

In the meantime, please take care of yourself and others.  If you are homeworking for the first time and feeling a little stir crazy, call friends, family, colleagues (including me!) and have a good chat/rant. 

Also let me know if you have any good Netflix suggestions!

Julia