April 2020: 9 Months to Go - The Good Work Plan & Other Legislation
11 July 2019
Anyone could be excused for being a little confused about all of the different legislative changes that are due for implementation during the coming year.
Whilst the new legislation is being released piecemeal, we have detailed below some of the main items and the associated legislation that we are aware of so far….
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Legislation |
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1 |
Ban use of derogated pay between assignments contract |
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Effective 6th April 2020, employees who are engaged on derogated ‘pay between assignments’ contracts will automatically revert to the right to pay parity.
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2 |
IR35: Off Payroll Working to be extended to the private sector |
Due July 2019 |
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Excepting companies defined as ‘small’, from 6th April 2020 it is planned that end hirers will be required to issue a determination on whether the individual supplying a personal service to them via their own personal service company (PSC) would, were they to make the supply outside of their PSC, be treated for tax purposes as an employee. The principle is subject to consultation which ends on 28th May 2019 with legislation expected to be published in July.
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3 |
VAT Reverse Charge in the construction sector |
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Effective from 1st October 2019, the customer will be liable to account to HMRC for the VAT in respect of purchases of construction services rather than the supplier. The reverse charge applies throughout the supply chain where payments are required to be reported through the Construction Industry Scheme (‘CIS’). It will apply until the point where the customer receiving the supply is no longer a business that makes supplies of construction services (‘end users’).
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4 |
Right to a written statement of particulars and what they must contain |
The Employment Rights (Employment Particulars and Paid Annual Leave) (Amendment) Regulations 2018
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This new legislation, which comes into effect on 6th April 2020, amends Part 1 of the Employment Rights Act 1996 to effect that all workers (and not just employees as previously) now have the right to a written statement of particulars of employment which must be given prior to, or on commencement of employment.
The Employment Rights (Employment Particulars and Paid Annual Leave) (Amendment) Regulations 2018 also details what must be included within the statement of initial employment particulars.
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5 |
Holiday pay reference period to be extended to 52 weeks |
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Effective 6th April 2020, the reference period for calculating average weekly pay appropriate to payment of holiday pay is extended from 12 weeks to 52 weeks.
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6 |
Key information document to be provided by employment businesses |
The Conduct of Employment Agencies and Employment Businesses (Amendment) Regulations 2019 |
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Effective 6th April 2020, an employment business must give work-seekers a Key Information Document which clearly sets out certain key information concerning their relationship. This document must be provided before the business reaches an agreement on terms with that person.
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7 |
Taxation of Termination Payments |
National Insurance Contributions (Termination Awards and Sporting Testimonials) Bill 2017-19 (Progression of the Bill) |
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Effective 6th April 2020, the introduction of employer NICs on termination payments above £30,000 will now take effect from 6 April 2020 rather than the original proposed date of 6 April 2018.
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8 |
Implementation of Paid Parental Bereavement Leave |
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Effective 6th April 2020, primary carers – not just parents – will be entitled to at least two weeks leave following the loss of a child under the age of 18 or a stillbirth after 24 weeks of pregnant.
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9 |
All tips or gratuities will be passed directly to the Employee |
Code of Best Practice on Service Charges, Tips, Gratuities and Cover Charges |
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Effective 6th April 2020, a big change for those working in the hospitality and catering industry is that employers will be banned from taking “administrative fees” from tips and gratuities—they will pass the whole amount directly to the individual, rather than be taken by the employer.
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Other Good Work Plan changes are arriving in April 2020—but the government hasn’t set all the dates yet and we will provide updates on a quarterly basis so watch this space...
Want to get to grips with the Good Work Plan ahead of April 2020? Get in touch today!