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Changes to Travel & Subsistence legislation from April 2016 for Support Staff

If you are currently paid by your agency through an umbrella body then this QnA is here to help you. There are significant changes in April may have an impact upon your earning potential and placements. Please read below for more information.

From April 2016 the Government have changed the rules on travel and subsistence (T&S). Some employment agencies have utilised this in the past to increase profits and inflate pay rates by using intermediaries, in many cases umbrella bodies or personal services companies (PSC). From April these options are being limited and in many cases eradicated.

·         What does this mean for you?

Well that very much depends on how you are paid by your agency. If you work for Eyears, then this will have no impact upon you. However if you are paid through an umbrella company or PSC, then it is quite possible you will be paid less from April.

·         Why might I be paid less if I currently work through another agency via an umbrella company?

The benefit that the agency receives from processing you in this way will be removed as will the benefit you would obtain as a paid member of staff. This means there may be little or no benefit to process your wages through this way and the agency may well wish to migrate you to a PAYE model. This means your basic pay rate may remain the same, but you will now pay tax & national insurance (NI) at source and thus, take home pay is reduced by your tax and NI element.  So if your pay rate is not uplifted from April to compensate for this, your take home pay is likely to reduce from April. If you’re not sure how you’re being paid or what will happen to your pay rates from April – you should contact your agency immediately.

·         How can I earn the same as I do today?

It would appear the only way to do this is to increase your pay rate by the amount of tax and NI that you may pay from April. This will of course vary by individual but again, if you’re unsure you should contact your agency to find out what they’re doing to help you.

·         What is SDC?

SDC (Supervision Direction Control) is a test that HMRC will employ to establish if the staff member is truly working as a contractor with T&S benefits or not. It is generally regarded that this is not the case for staff within the Education sector and therefore SDC rules apply. You should seek your own advice regarding this element from your agency.

·         Will I still be able to work in my current setting as my assignment isn’t due to finish until after this legislation begins?

Any assignments you have agreed with your agency you will need to double check this is the case. Some agencies may increase the charge rates to clients to make up for the amount of money they will no longer make. This may in turn jeopardise your placement. No placements with Eyears are jeopardised as a result of this change in legislation.

·         Will staff from Eyears be receiving less money from April as a result of this?

No. No one who works for Eyears will see their wages reduce as a result of this legislation.

·         Can I register or transfer my work with Eyears?

Yes. You can transfer and work with Eyears as and when you are ready. You will of course need to go through our recruitment process but once complete you’ll be able to enjoy the benefit of working for an agency with complete transparency to its support staff and clients alike.

·         Is there any incentive for me to join Eyears?

We think there’s lots of reasons why you’d join us, our friendly service, dedicated consultants and of course, lots of local work. However, if you want more information, give your consultant a call at Eyears and they’ll offer you an incentive just for you.

As with any changes to individuals circumstances, you should always check for yourself how this will impact upon you and take advice from those registered and in a position to do so. This document is not meant as any legal advice and should not be taken as such. For more information the actual Policy Paper link is listed below.

 

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