Every UK orgainsation must comply to HMRC regulations, they have the power to investigate how your organisation employ staff, contract types, complying to the National Minimum Wage and National Living Wage, payroll and tax compliance and, if you hire contract workers, are these workers 'Genuinelly self-employed' or in disguise of being self-employed?

If you hire employees through a third-party such as an agency and these workers are paid by these agencies, these workers have the same rights as your own paid employees.

It is a legal requirements to to carry out a 'Right to Work' check on all people you wish to employ and for overseas nationals wanting to work in the UK, verification carried out. When the UK leaves the EU, this process will be required for all EU natinoals who apply after UK leaves the EU. 

Illegal working carries a civil penalty of £20,000 per illegal worker plus a possible custodial sentence which can be 6 months in prison.

We have dedicated pages on our website under business services tab that covers Home Office compliance.

On the 25 March 2018, the EU General Data Protection Regulation (GDPR) came into force. 

This tightens the previous Data Protection Laws that were in the UK ensuring any EU national data is treated the same regardless where the UK or EU national works in the world.

Every organisation that employes UK and EU nationals must comply to The Data Protection Act 2018.

Failure to comply, your organisation  could be forced to pay either 10m or 20m EURO fine or 4% whichever is greater. 

The ICO has created 6 steps and further guidance when the UK leaves the EU, click here to learn more.

The Equality Act covers an array of areas relating to discrimination within the work place but it can start from the moment you post a job to hire someone. This act protects peoples rights from discrimination in the workplace to the wider society.

Discrimination: making a complaint

Before the Act came into force there were several pieces of legislation to cover discrimination, including:

• Sex Discrimination Act 1975
• Race Relations Act 1976
• Disability Discrimination Act 1995

To  complain about possible unlawful treatment there are 2 separate processes, depending on the circumstances of your claim:

You have compliants on or before 30 September  2010 when the act changed and claims since the 1 October 2010.

Areas you need to know that can be deemed as discrimination are:

• the basic framework of protection against direct and indirect discrimination, harassment and victimisation in services and public functions, premi, work, education, associations and transport
• changing the definition of gender reassignment, by removing the requirement for medical supervision
• providing protection for people discriminated against because they are perceived to have, or are associated with someone who has, a protected characteristic
• clearer protection for breastfeeding mothers
• applying a uniform definition of indirect discrimination to all protected characteristics
• harmonising provisions allowing voluntary positive action.

In 2011 recruitment and promotion was amended so if a worker feels they were not offered a job or not promoted based on discrimination, they could have a case.

From October 2012 age discrimination was amended so if a person legally permitted to work in the UK felt they were not offered a job or promotion because of their age, they could have a case.

Click here to learn more about the equality act 2010.

Contracting comes in different flavours, you have:

• B2B which could be freelancers, consultants and contractors
• Contracting out your PAYE staff to third-parties
• You have Home Office Tier 2 contracting
• You have agency staff and zero hour contracts.

It is critical you fully understand the legality of hiring people as they have rights and can contact the likes of ACAS, HMRC and Home Office which can lead to an investigation.

Another major issue that recently changed is IR35. In April 2021, there will be an IR35 private sector update that will align public and private sector IR35 rules. The IR35 changes were expected to start 6 April 2020 but due to the Coronavirus, they will now be introduced on 6 April 2021.

The IR35 rule change means you have 'Inside' and 'Outside'.

Inside means you must be on par with the organisation existing employees that includes minimum wage, maternity pay, protection from discrimination and pay the same tax.

Outside means it does not prevent you from paying tax on the private contractor basis described above. Basically you pay yourself a salary (Limited business) and can withdraw further income such as s dividends which are not subject to NIC.