The term AWR refers to the Agency Works Regulations, which were introduced in October 2011.

The purpose of the Regulations is to ensure that the basic working and employment conditions of temporary workers are no less favourable than if they had been recruited directly by the hiring company.

The areas covered include remuneration, paid holiday, working hours and overtime, and following an agreement between the UK Government, the CBI and the TUC will take effect after a temporary worker has been engaged for a 12 week period.

In addition, agency workers will have the right to access certain of the hiring company's collective facilities and amenities with effect from the first day of their assignment, together with the right to be informed about permanent employment opportunities.

BIS Goverment information regarding AWR

For more information feel free to contact a member of the Black Diamond Team or click here.

The term IR35 refers to the HMRC explanation of legislation contained in Schedule 12 of the 2000 Finance Act.

The purpose of IR35 is to remove opportunities for avoidance of Tax and NI contributions by the use of intermediaries, such as service companies or partnerships, in circumstances where an individual worker would otherwise be an employee of the client.

Essentially, IR35 affects all contractors who do not meet HMRC's definition of 'self employed'.

Prior to IR35 the Government had been concerned about the hiring of individuals through their own service companies. It was possible for someone to leave work as an employee on Friday and return the following Monday doing the same job as an indirectly engaged 'consultant' paying reduced Tax and NI contributions.

In practical terms from 6th April 2000 anyone who would otherwise be hired as an employee but who instead provided services via their own service company are deemed to be directly employed. This way they are obliged to pay NI contributions and PAYE in the same manner as if they were directly employed.

HMRC information regarding IR35

Concerned? – Call and speak with one of our advisors on 01942 679997 or click here to contact us through the website.

In December 2006 HM Revenue and Customs introduced a documentation entitled "Tackling Managed Service Companies". This document set out a strategy of how it was going to tackle the avoidance of Tax and National Insurance contributions for workers operating through a Managed Service Company.

The 2007 Budget introduced legislation that enforced full Tax and NIC payments on all income received by a Managed Service Company.

HMRC Information regarding the new legislation

Concerned? – Call and speak with one of our advisors on 01942 679997 or click here to contact us through the website.

Section 660 of the Income and Corporation Taxes Act 1988 is commonly referred to as 'the married couples business tax'.

Since its introduction people have been issued with tax bills dating back several years, causing a great deal of controversy and media attention.

HMRC claims that under the settlements legislation, dividend income received by non-pay rolled spouse or partner should be taxed as the principal Directors income.

Basically, income arising for a partner or spouse of someone who operates their own business is treated as income for the person running the business, not for the partner or spouse.

This has resulted in substantial tax bills; in some cases, back-dated for over 6 years.

HMRC suggests you could be at risk from Section 660 if:

• Your spouse owns ordinary shares in your company
• You share profits with or pay dividends to any relative, spouse or close partner, who doesn't play an active role in the business
• You pay dividends
• The amount of money you and your spouse bring into the company are not in proportion to the number of shares you own

Concerned? – Call and speak with one of our advisors on 01942 679997 or click here to contact us through the website.