Employment Blog

Whilst it appears almost certain that the UK wide lockdown shall be extended into early Summer and possibly longer, it is worthwhile putting some thought into how, precisely, businesses should most effectively return to their offices post lockdown.

I’m sure the Chancellor’s announcement on Friday that the Government will reimburse 80% of the wages of those who would be otherwise laid off by their employers because of the impact of COVID-19, will come as a great relief to many. The affected employees will be put on “Furlough Leave”. But what does this mean and how will it operate in practice?Understandably, at this stage, details around the scheme, are scant. However, I’ve jotted down a few pointers of what we know (or think will happen). All UK employers can access the scheme (e.g. limited companies, sole traders, LLPs, charities etc)....

• Statutory sick pay for "all those who are advised to self-isolate" even if they have not displayed symptoms
• Statutory Sick Pay will be made available from day one when self-isolating, instead of day four
• The government will meet costs for businesses with fewer than 250 employees of providing statutory sick pay to those off work "due to coronavirus"

Government to follow up with further details, stay tuned.

What is IR35?IR35 is tax legislation, which was introduced to crack down on perceived tax avoidance whereby individuals would seek to avoid paying employee income tax and national insurance contributions by supplying their services through an intermediary. An intermediary could be a personal service company (PSC) or another type of intermediary company such as an agency.What changes to IR35 are coming in April 2020?IR35 initially meant that the contractor would be responsible for determining whether they should be taxed as an employee (meaning the tax liability would sit with them). However, due to difficulties enforcing this, in 2017 the Government reversed...

Taking on employees for the first time is a big milestone for any company.  Building a business which has been able to create employment and attract talented individuals is something to be really proud of. Of course, employing people is also a bit of a learning curve for many small businesses.