HM Revenue and Customs have made an important legislative change to the way you engage your ground transport operatives, from drivers to passenger assistants, escorts etc.

Legislation was introduced in The Finance Bill 2014 and became effective from April 2014.

The legislation...

“Supports the Government’s anti-avoidance strategy and its fairness agenda by helping to ensure that employment intermediaries and workers’ pay their fair share of employment taxes”.

Which means…

“(The contractor) Will be required to operate the new agency legislation and deduct income tax and National Insurance Contributions (NICs) through Pay As You Earn (PAYE) where the manner in which the worker provides their services is subject to (or subject to right of) supervision, direction or control of anyone in the contractual chain.”

This measure supports the Government’s anti-avoidance strategy and its fairness agenda by ensuring employment taxes are paid.

The legislation means, if your drivers are under supervision, direction or control, you must now pay them under PAYE, i.e. you directly employ the worker and are responsible under employment law for pay & conditions, sick pay, holiday pay, pension etc.

If this new legislation makes the hair on the back of your neck stand up, you need to know that there is a company who has been aware of the impending legislation. Working with and supported by Accountax consultants who have an unrivalled reputation in this field.

There is an alternative, KAPLA Hybrid Umbrella.

Operatives are paid via the KAPLA scheme which offsets their expenses then deducts tax and national insurance. Under this scheme nothing changes for you.