click to view mobile Navigation
You are here > Travel & Subsistence schemes cause a stir

Travel & Subsistence schemes cause a stir

As pressure on those operating travel & subsistence expenses schemes for lower-paid workers continues to rise, payroll and accounting services firm Backoffice has withdrawn from the market its umbrella product Pay Day, operated through its subsidiary Paymaster.
 
This follows the news last Friday [23 November] that a group of MPs had produced an Early Day Motion calling for action in the 5 December Autumn Statement on the schemes run by some temporary labour providers, and an earlier decision by a judge not to grant a licence to one company, FS Commercial, proposing such a scheme.

That judgement, backing up a decision made by the Gangmasters Licensing Authority, had been hailed as the beginning of further crackdown on such schemes.
 
Indeed, in a letter to clients sent by Paymaster managing director Roger Mason, obtained by Recruiter, it said that in the light of recent events, “schemes that have a tax relief-related solution for workers on or close to NMW [national minimum wage] can now be construed as non-compliant and we are therefore compelled to withdraw Paymaster Ltd from the Umbrella market”.
 
Specifically, it listed the FS Commercial judgement, the fact that the so-called Cordant Case is now being used by HMRC “as the foundation or basis for their thinking” on the matter” and a third case in which a scheme had previously been accepted and now being challenged, as reasons it was to withdraw its offering.
 
An email informing of the withdrawal of Pay Day was circulated on 23 November, although the scheme was made unavailable as of 19 November. Backoffice tells Recruiter: “The company is not releasing any statement on this at this time.”
 
The letter also clarified that it continues “to offer a Classic Umbrella for higher paid workers and we run a PAYE payroll, Sole Trader and CIS Schemes through Backoffice Ltd, Backoffice Construction Ltd and Backoffice Pay Ltd”.

Article courtesy of www.recruiter.co.uk




< Go Back

LATEST NEWS


Hewett's Support Worcester Full & Half Marathon 2018
We are pleased to announce that Hewett Recruitment will be supporting St Richards Hospice and sponsoring the Worcester Full and Half Marathon 2018 as it enters its seventh year.
04/01/2018 10:38:41
Read More >>

HR Professionals Conference 2017 - Huge Success
With over 100 delegates, this years' HR Conference hosted by Hewett Recruitment and the HW Chamber of Commerce is now the largest HR Conference in Worcestershire.
27/11/2017 16:55:25
Read More >>

Hewett’s once again pledge their support to local Foodbanks
Hewett Recruitment have once again pledged their full support this Christmas with a Foodbank collection initiative aimed at helping the local communities of Worcestershire who have fallen on hard times.
18/10/2017 10:55:56
Read More >>

Hope & Glory Dinner - 29th November 2017
Spectacular Black-Tie 'Proms' Celebration in Bewdley... Flag waving and singing to a 20-piece orchestra - three course dinner
22/09/2017 12:20:40
Read More >>

Hewett’s ‘values’ recognised at staff awards
Hewett’s Annual Family Fun Day and Company Awards took place at the West Midlands Safari Park in July.
31/07/2017 15:50:48
Read More >>

LATEST BLOG


Louises Column - Salary & Skills Survey
Last month Hewett Recruitment partnered with the Herefordshire & Worcestershire Chamber of Commerce to publish the Salary & Skills Survey 2017.
18/01/2018 10:22:48
Read More >>

Christmas Legal E-Bulletin - Preparing Your Business for 2018
In the last Employment Law E-Bulletin of 2017, learn how to prepare your business for the new year ahead and the recent employment law developments that should be considered.
18/12/2017 12:50:33
Read More >>

Louises Column - The Warriors Community Foundation
Many of us in business engage and support local causes, to help raise awareness and generate much needed funds for charities and local groups to continue their good work. I'd like to highlight and encourage you to get involved with the great work going on at an exceptional and award winning foundation, The Warriors Community Foundation.
07/12/2017 13:57:01
Read More >>

Legal E-Bulletin - Reimbursement Scheme for Employment Tribunal Fees Announced
Sally Morris, Partner and Head of Employment for mfg Solicitors shares recent declaration about unlawful Employment Tribunal fees and the reimbursement that eligible applicants may be entitled to.
04/12/2017 13:22:02
Read More >>

Louises Column - The Importance of Flexible Working
What to do as a job is the most important life decision that most people will ever have to make. This outranks other life-defining decisions such as where to live, starting a family, or getting married according to a recent survey.
15/11/2017 11:13:09
Read More >>