HMRC OP21: guidance for clients updated
Today, HMRC have updated their guidance on off-payroll working for clients. Some rules already apply to all public sector clients but, from 6 April 2021 medium and large-sized private sector clients also need to apply them. The private sector includes third sector organisations, such as some charities.
Published: 30 November 2020
Case law: bike mechanic and mutuality
Mr Chris Townsend v Bikeworks CIC: 3200159/2020
This case was a preliminary hearing to determine whether the claimant, Mr Townsend, was an employee or worker of Bikeworks CIC under s.230 Employment Rights Act 1996. The case was decided predominately on the issue of mutuality.
The judgment of the Tribunal is that the Claimant was neither an employee of, nor a worker for, the Respondent, as defined by s.230 Employment Rights Act 1996, but in fact a self-employed independent contractor. Accordingly, all the Claimant’s complaints are struck out, and his claim is dismissed.
Published: 27 November 2020
HMRC ESM: OP21 conditions of liability
HMRC’s Employment Status Manual has been amended following the announcement by the Financial Secretary to the Treasury, Jesse Norman, see below. The amendment is to correct the legislation which had widened the scope of ‘intermediary’ to include an umbrella company, for example. This was an unintended consequence which HMRC are now going to correct in the Finance Bill 2021.
Published: 13 November 2020
Case law: mutuality of obligations for drivers
Swain v. Mercedes Benz South West [2020] UKET 14018998
The claimant (Mr Swain) was not an employee of the respondent (Mercedes Benz South West “MBSW”). The complaint of unfair dismissal was dismissed and the judgement considered ‘mutuality of obligations’.
Published: 11 November 2020
HMRC CEST: evidence gathering update
HMRC have updated their Guide to determining status: fact-finding/evidence gathering – ESM0558. Although this is mainly a format update, it is worth noting the contents of the guidance.
Published: 5 November 2020
HMRC Guidance: OP21 resources and support
HMRC have updated their resources and support page for off-payroll working. There are a range of help and education resources available
Published: 4 November 2020