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Right To Work

Right to Work Documentation

Right to Work Document Changes

The start of the 2022/23 tax year saw the law will change in relation to Right to Work documentation.

Following government legislation, Red Ark will no longer be able to accept Biometric Residence Permits (BRP)as proof of right to work or rent in the UK.

Instead, both EU and non-EU workers will require to share a code beginning with W to prove their right to work status. They can generate the share code by heading to the Government website at the below link.

https://www.gov.uk/view-prove-immigration-status


Red Ark can still accept passports from EU and non-EU holders that have indefinite leave. However following the legislation, can no longer accept any other passport with Visa. 

Our requirements for British workers will remain as either a passport or birth certificate.

If you require any further assistance, please get in touch with us the Red Ark Customer Care Team at customerservice@red-ark.co.uk or telephone us at 01383 431687.

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National Living Wage and Health & Social Care Levy

Changes to Contractor Pay

The 2022/23 tax year starts on April 6th and will see two significant changes to pay implemented through the National Living wage and Health & Social Care Levy – but what do these changes mean for your workers?

Health & Social Care Levy

This temporary increase to National Insurance will be deducted from 6th April 2022 until 5th April 2023. The contributions will help to fund the NHS and social care across the UK. 

The Health & Social Care Levy will be a separate tax in its own right from Apr 2023. 

Employees, employers, and the self-employed will all pay an additional 1.25% on their NI deductions.

The threshold before NI deductions will also raise on April 6th 2022, from £9,568 to £9,880.

The table below gives an overview of what this new Health & Social Care Levy uplift to National Insurance will mean for Employees and Employers.

National Living and Minimum Wage increase

Alongside the Health & Social Care Levy increases to National Insurance, increases to National Living and Minimum Wage will come into effect on the 6th April 2022.

The table below shows the increase in National Living/Minimum Wage from April 2022.

Please ensure your contractors are aware of the new deductions and the National Living and Minimum wage increases.

The Red Ark Customer Service teams are always available to answer any queries your contractors may have.

If you need further support on the changes, please don’t hesitate to get in touch with us at www.red-ark.co.uk. Alternatively, head over to https://www.gov.uk/guidance/prepare-for-the-health-and-social-care-levy to find out more.

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Meet The Team – Rachel

Every month, we are profiling one of the Red Ark team to allow our clients to put a face to the many names they speak with regularly.

This week we are sitting down with Rachel Gallagher.

How long have you worked in the Payroll world? I will have been part of the Red Ark team for 2 years in October as a Payroll Administrator.

What do you feel your strengths are? I have very good organisational skills and the ability to stay calm under pressure. I was previously an events planner running events and weddings, looking after brides on their wedding day sets you up to deal with just about anything!

What do you feel is an important part of your role? I think building relationships with our agencies and contractors is very important it just makes everyone’s job easier. Also with Payroll you must have excellent attention to detail to ensure everyone is paid correctly and on time.

What challenges to you face? The same as everyone over the last year! With Covid, we have been working from home but add in a 2-year-old running around, it has been a challenge. We had new starts join the team while in lockdown, so training them remotely was an experience, but they were great at adapting!

What is your favourite thing about working for Red Ark? It has to be the team. We have a great dynamic and work together so well even though many of us haven’t even met in person! I like that it is fast paced and I’m always learning. Legislation changes and new rules regarding payroll come into place regularly so we have to ensure that we have up to date knowledge so that we can assist our contractors with the correct information.

Tell us more about you Rachel! I’m Mum to Mia who just turned 3 she certainly keeps me on my toes! During Lockdown I started running and have completed a few challenges for charity. In January, I ran 50 miles for Maggie’s Cancer Centre in the snow and ice. I’m hoping I can keep it up but maybe in better weather conditions! Before lockdown my favourite thing was going out to gigs. I love music, so I’m looking forward to getting back to live music once it’s safe again.

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All You Need to Know about the COVID-19 Kickstart Scheme

Since the first national lockdown in March 2020, the government have implemented a variety of schemes to provide financial support to businesses and workers throughout the UK.

2020 saw a record number of redundancies, and one of the hardest hit brackets was 16-24-year-olds. What’s more, one of the most affected sectors is the leisure and hospitality industry who are heavy recruiters of this age bracket. Thousands of young people also left full time education last year with limited employment prospects. As such, the government launched a £2 billion fund aimed at generating more employment opportunities for young people. Introducing: the COVID-19 Kickstart Scheme.  

What is the COVID-19 Kickstart Scheme?

The scheme is specifically aimed at young people between 16 and 24, who are currently claiming Universal Credit and may be at risk of long-term unemployment. The government will fund 100% of job placements for young people, covering national minimum wage for 25 hours a week as well as national insurance and pension contributions so there is no cost to the business. You can choose to offer more than the national minimum wage, and more than 25 hours per week, however this won’t be covered by government funding and you will have to pay the difference.

How Does the Scheme Work?

Any organisation, no matter how big or small, can apply to the scheme. There are however some criteria that the placement must meet:

  • It must last at least six months and be for at least 25 hours work per week.
  • The placement must not be for a role that has already been advertised.
  • The placement must not cause existing employees or apprentices to lose their job or have their employment reduced.
  • The role shouldn’t require extensive training before the placement can start.
  • It must include support for young people to help them get work after they finish (if they’re not taken on longer term following the placement).

How Do I Apply?

The scheme was officially launched in September 2020 and is expected to continue until at least December 2021. When the scheme first launched there was initially a caveat that employers would have to offer a minimum of 30 placements to qualify for the scheme. However, as this was ruling out many smaller employers, the government has recently removed this requirement.

To apply for the scheme, you can either do so online yourself or you can seek the assistance of a Kickstart gateway who is already working with the Kickstart scheme. A Kickstart gateway can be any type of organisation, but one that already has a Kickstart Scheme grant agreement in place, which they can add employers and job placements onto. More information can be found here.

What are the Benefits to my Business?

It’s clear that the COVID-19 Kickstart Scheme will help a lot of young people get back into employment, but this is also a great opportunity for businesses and employers. As the placements are fully funded by the government, businesses can benefit from an increase in skills and support, with no additional cost. There isn’t a long term commitment to provide roles after the 6 month placement has been completed, and providing all the necessary criteria are met, each employer will receive a £1,000 grant for every successful job placement.

How Can We Help?

If you are considering taking part in the COVID-19 Kickstart Scheme and as such may be dealing with an increased workforce, let your payroll be one less thing for you to worry about.

Want to find out more? Our friendly, knowledgeable team are on hand ready to help talk you through the best options for you and your business.

Contact us today to discuss your payroll solutions and what we can do for you.

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Last Minute Guide to IR35

Chancellor Rishi Sunak’s Budget announcement on March 3rd, 2021 has confirmed that there will be no further postponement to the private sector rollout of the off-payroll legislation, also known as IR35.

Although the IR35 changes have already been postponed a year, due to the COVID-19 pandemic, many businesses were calling for a further delay and were undoubtedly holding out hope for a last minute U-turn.

However, the IR35 changes are going ahead as planned and will come into effect on 6th April 2021 with many businesses having taken the delay from April 2020 as an opportunity to meet the new compliance conditions.

Although some businesses are ready, due to the speculation of a further deferral, some may not be fully prepared for the new rules and how it may impact them. We’ve prepared a last minute guide below, for all things IR35, to make sure you’re ready.

A Quick Reminder – What Is IR35?

The IR35 laws were first introduced in 2000 in an effort to identify ‘disguised employees’ within businesses. IR35 legislation ensures off-payroll and on-payroll workers are taxed fairly and accordingly. Breaking this down, this means that if a contractor is working under the exact same conditions as a contracted employee, then IR35 rules make sure that the contractor pays the same tax and national insurance contributions as their employed counterpart.

What Are The New Rules?

The change coming into play on 6th April 2021, concerns who will make the IR35 determination. At present, contractors themselves are responsible for determining their employment status, and whether or not they’re working outside IR35 rules. When the new rules come in, this responsibility will shift to the client (i.e., agency).

Agencies will be responsible for determining the employment status of their workers and whether they fall inside or outside of IR35. For example, if you are registered as self-employed, but are found to be working as an employee, the agency will be responsible for paying any additional tax due.

Who Will Be Affected By The Changes?

The legislation change applies to all medium, large or private sector businesses and agencies. Contractors in particular will be affected, including those who work in construction, IT and engineering, to name a few.

The new IR35 rules don’t, however, apply to all businesses. Currently, small business as well as sole traders and PAYE agency workers, are exempt. There are also situations where it is possible to work outside the scope of IR35, for example if you are a limited company contractor genuinely working on your own, i.e., using a contractor to provide services, not ‘employed’ by a client.

How Can We Help?

With less than three weeks to go until the IR35 changes come into effect, if you’re still feeling unsure about how these changes will impact your business and need some guidance with your payroll, we are here to help.

Our friendly, knowledgeable team are on hand ready to help talk you through the best options for you and your business.

Contact us today to discuss your payroll solutions and what we can do for you.

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The National Living Wage and National Minimum Wage are increasing in April 2021: Are you ready?

Chancellor Rishi Sunak recently unveiled his 2021 Budget that will see millions of workers across the country receive a pay rise.

Amongst the raft of additional financial support for both people and business that was announced on 3rd March as we continue to feel the impact of the pandemic, was the welcome news that as of 1st April this year, there will be a 2.2% increase to the National Living Wage, lifting it from £8.71 per hour to £8.91 per hour.

The National Living Wage previously only covered those aged 25 and over. However, the age threshold to qualify has now been extended to cover anyone aged 23 and over. This means over two million of the lowest paid workers in the UK will benefit from this increase.

For those under the age of 23, the National Minimum Wage has also been boosted, to £8.36 for those aged 21-22 and £6.56 for 18–20-year-olds.

The rate of pay for apprentices has also increased by 3.6% and the Chancellor has further announced that the incentive payments to businesses for recruiting apprentices will be doubled to £3,000 for all new hires, of any age.   

It’s worth noting that there weren’t any changes announced in regard to pensions, for both employer and employee contributions. Additionally, at present there are no changes to employee national insurance rates.

We’ve outlined the wage increases by age in the table below:

Age RangeLast YearFrom April 2021
Apprentice Rate£4.15£4.30 (up 3.6%)
Age 16-17£4.55£4.62 (up 1.5%)
Age 18-20£6.45£6.56 (up 1.7%
Age 21-22£8.20£8.36 (up 2%)
Age 23 or over£8.72£8.91 (up 2.2%)

How Can We Help?

Whilst the increases to both the National Minimum Wage and the National Living Wage are welcome news for low paid workers across the UK, there are cost implications for employers who will need to factor in the increased labour cost to their operating costs.

If you are unsure about how the wage changes will impact your business and need some help with your payroll, we are here to help.

Our friendly, knowledgeable team are on hand ready to help talk you through the best options for you and your business.

Contact us today to discuss your payroll needs and what we can do for you.

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Charity of the Year

Throughout 2021, the Red Ark teams will be fundraising for good causes across the UK.

Our Charity of the Year is Children with Cancer UK.

Who?

Children with Cancer UK are the leading national charity dedicated to the fight against cancer in children.

Why?

Children with Cancer UK have seen a 40% reduction in funding due to the Coronavirus pandemic and with only 2% of cancer research in the UK dedicated to children’s cancer, fundraising is more vital than ever before.

What do they do?

The charity work hard to develop safer and kinder cancer treatment for children with less toxic side affects. They are also devoted to supporting the families of children with cancer providing better care and support in extremely difficult circumstances.

What will we do?

Our Director Ian Campbell has signed up to run the London Marathon for Children with Cancer in order to kickstart our fundraising campaign. We are also looking to host some themed events such as Zoom Murder Mystery nights and Escape Rooms. As our teams are spread across the UK, we are also looking to do some team walking challenges that take in some of the best views the country has to offer.

Find Out More

To find out more about Children with Cancer and the amazing work they do, go to https://www.childrenwithcancer.org.uk/

Please get in touch at hello@red-ark.co.uk and 01383 431687 if you have any fundraising ideas you’d like to share.

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National Living and Minimum Wage

The National Living Wage and National Minimum Wage are increasing in April 2021  – are you ready for the change?

The 1st of April 2021 will see a 2.2%% increase to the National Living Wage, lifting it from £8.71 per hour to £8.91 per hour. This increase will benefit around two million of the lowest paid workers in the UK. The National Minimum Wage is also increased.

The National Living Wage is also increasing and will be extended to cover anyone aged 23 and over, this was previously 25 and over.

Changes By Age

Increases in NLW and NMW are welcome news for low paid workers but there are cost implications for Employers who will need to factor in the increased labour costs to their operating costs. 

Pensions

There are no changes to the way Pensions are calculated, Employee or Employer contributions at present.

Employers NI

There are currently no changes to these rates.

What do I need to do?

Red Ark’s systems will automatically update with the new rates from the 1st April 2021, ensuring a smooth transition to the new Living Wage for all those eligible.

For more information on the changes head to https://www.gov.uk/national-minimum-wage-rates

Contact Us today at hello@red-ark.co.uk or on 01383 431687

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Meet the Team

Each month we profile one of the team to give our agencies a face to put to the many voices they speak to at Red Ark. This month we are speaking to our Payroll Manager, Claire Bell.

Introducing Claire Bell

How long have you worked in the Payroll world?  I have worked in payroll for the last 5 years starting out as a Payroll Assistant. I have been leading the Payroll Team for the last 3 years. 

What do you feel your strengths are? I’m very organised and I have an eye for detail. Its really important to me that every single contractor paid accurately and on time, every time so I am always conscious of our deadlines and cut offs.

What do you feel is an important part of your role? I try to work closely with our agency partners to ensure any issues are resolved quickly. Its very important to maintain strong relationships and provide excellent service. Its also really important to me that my team are experts in their role and are able to support our agencies.

What challenges have you faced? 2020 saw some big changes to Red Ark. Because of the expansion of our teams across the UK, I had to manage my team remotely for the first time. And that’s without even mentioning Covid!

What is your favourite thing about working for Red Ark? Definitely the people. We have a really close knit team even though we are spread across the UK. As a result, some of us haven’t met each other in person! So we try to have regular Zoom quizzes or arrange for lunch to be delivered home for the teams.

Tell us more about you Claire!  I’m Mum to two boys, Mitchell 18 and Fraser 8 who keep me on my toes. In my spare time, I raise money each year for charities that support children and young people with cancer.

Claire is a huge asset to the Red Ark team and is always willing to go the extra mile for our agencies. Claire and the rest of the Payroll Team are always at the other end of the phone to help you with your payroll needs.

Contact us today at hello@red-ark.co.uk or phone us on 01383 431687

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Do you have any Limited Company Contractors?

Do you have any Limited Company Contractors?

If the answer is yes, then you need to be aware of the changes to the IR35 legislation being implemented on 6 April 2021 that will affect you and your Limited workers as they may no longer be able to be paid through their Limited Company.

What is IR35?

IR35 is a piece of tax legislation which has been around since 2000. It determines whether or not a worker is a disguised employee working through a PSC, or a genuine self-employed contractor.

What does IR35 do?

IR35 looks at the differences between an employee and a contractor. For example:-

  • Do they work differently?
  • Are the providing a service?
  • Are they under supervision, direction and control?
  • Are they advised when to start and finish work?
  • Are they advised which days to work?

IR35 determines if a contractor works inside IR35, like an employee, or outside IR35, like a contractor.

If the contractor is inside IR35, they will have to be paid Umbrella PAYE or PAYE and will no longer be viable to be paid through their Limited Company.

If the contractor is outside IR35, then they can continue to be paid via their Limited Company.

To help determine whether the contractors are inside or outside IR35 then the process below should be followed:-

  • Firstly, the end client must give their opinion on whether the role is inside or outside IR35. If the client refuses to do this, then they are potentially liable for any unpaid taxes.
  • If the end client determines the role to be inside IR35, then the contractors can not be paid through their own Limited Company and will have to be paid Umbrella PAYE or PAYE. If the agency chooses to ignore this status determination, then they will be held liable for any unpaid tax. This could be up to 15% of the Contractor’s weekly wage.
  • If the role is outside IR35, then it would be advisable for the Agency to engage with a third party specialist to carry out a status determination of the contractor and their role. Red Ark has partnered with Kingsbridge who can help you with these status determinations. Get in touch today if you would like us to make an introduction to them. To find out more about how they can help, click on the link below.
  • https://www.kingsbridges.co.uk/

What are the benefits of transferring to Umbrella PAYE or PAYE through Red Ark?

If the contractors who are currently paid through their own Limited Company have to be transferred over to Umbrella PAYE or PAYE then there are a number of benefits for the contractors going down this route. These benefits include:-

  • Dragon Perks – We have teamed up with around 4000 businesses to offer the contractors discounts and free services. They will receive discounts on food shopping, fuel, clothes shopping etc..  Contractors will also get free virtual gym sessions, free eye tests and free credit rating.
  • There is no admin for contractors. No end of year accounts, and therefore no need for an Accountant. 
  • The contractors don’t have to pay extra for insurances. If they are paid through Umbrella then the contractor will be covered by our insurances.

If you wish to discuss any of the above in more detail, please do not hesitate to get in touch.

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