Protection in an increasingly complex legal landscape
Recent years have seen significant new legislation targeted at the contingent workforce. Ship Shape has the robust compliance procedures, professional legal advice and innovative solutions to protect workers, agencies and end-hirers whilst still allowing them to operate cost effectively.
Key compliance legislation risk and worker type:
Travel & Subsistence tax relief (umbrella workers)
One of the key benefits of an umbrella contract was the facility for workers to benefit from tax relief on travel and subsistence expenses. Legislative change to the Income Tax (Earnings and Pensions) Act 2003, section 44 effective April 2016 removed this facility for agency workers.
Right to Work documentation (umbrella, PAYE)
The law on preventing illegal working is set out in the Immigration, Asylum and Nationality Act 2006 (the 2006 Act). Under section 15 of the 2006 Act, an employer may be liable for a civil penalty of up to £20,000 per worker if they employ someone who does not have the right to undertake the work in question. Read more
Agency Worker legislation (umbrella)
The regulations are designed to force contractors and agencies to provide agency workers with access to basic employee facilities and work opportunities on day one of their assignments. After 12 weeks in the same job the agency workers are entitled to the same pay,
Managed Service Companies (MSC) legislation (limited company contractors)
Ship Shape Pay do not promote or facilitate the use of limited companies. Where an operative is subcontracting through a Limited Company, Ship Shape ensure that the Limited Company structure is legitimate, eliminating the possibility of any charges or debt transfer: Read more
IR35 employment status (limited company contractors)
Ship Shape collects contractual and factual information establishing that workers fall outside of IR35. These establish no mutual obligation, substitution rights, and risk, for example. Ship Shape has successfully defended IR35 status in HMRC reviews in 2009 and 2012.
Supervision, Direction or Control (self-employed)
The 2014 Onshore Intermediaries legislation was introduced to help prevent false self-employment amongst agencies workers and increase the PAYE tax revenue to the treasury in the face of the growth in self-employment. It introduced the concept of ‘Supervision,