{"id":75052,"date":"2020-04-20T10:37:26","date_gmt":"2020-04-20T09:37:26","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=75052"},"modified":"2020-04-20T10:37:26","modified_gmt":"2020-04-20T09:37:26","slug":"coronavirus-job-retention-scheme-3","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/hr-skills-news\/coronavirus-job-retention-scheme-3\/75052\/","title":{"rendered":"Temporary construction workers shut out of job retention scheme"},"content":{"rendered":"

Hudson Contract<\/a> has warned that temporary construction workers are being shut out of the government\u2019s Coronavirus Job Retention Scheme<\/h2>\n

The government\u2019s Coronavirus Job Retention Scheme went live today (20 April), with businesses able to claim up to \u00a32,500 a month towards staff wages.<\/p>\n

The job retention scheme<\/a>, announced by chancellor Rishi Sunak as part of a package of support to protect jobs and businesses, allows employers to claim for a cash grant of up to 80% of a furloughed employees wages, capped at \u00a32,500 a month.<\/p>\n

Last week the Sunak announced the scheme will be extended for a further month until the end of June, to reflect continuing COVID-19<\/a> lockdown measures.<\/p>\n

Temporary construction workers shut out<\/h3>\n

However, Hudson Contract has warned that temporary construction workers are being shut out of the government\u2019s supposedly wide-reaching Coronavirus Job Retention Scheme.<\/p>\n

Hudson Contract spoke out after receiving a formal opinion from a QC and off-the-record comments from the head of litigation at a Big Four accountancy firm.<\/p>\n

Hudson Contract said the chancellor\u2019s directions to the Treasury issued at 1.46 pm on 15 April only include provisions to make payments to employees with a regular contractual income.<\/p>\n

Despite what has been stated in the official guidance, there are no provisions to deal with the large numbers of people working under umbrella contracts, agency workers and those self-employed<\/a> but taxed using PAYE due to IR35, onshore employment intermediaries or other legislation, according to Hudson Contract.<\/p>\n

This means many firms will have incorrectly paid out money to workers based on official guidance and subsequent grant claims will be invalid and vulnerable to clawback by HMRC for the next five years.<\/p>\n

It also means many temporary workers will now be left with nothing if their employers had waited to see the legislation before implementing the scheme.<\/p>\n

Ian Anfield, managing director at Hudson Contract, said: \u201cThe lack of support for temporary workers in the Coronavirus Job Retention Scheme raises serious questions about the much-awaited self-employed assistance scheme due to be up and running in June.<\/p>\n

\u201cThere is a huge difference in scope and value between the directions and the impression given by the published guidance and anyone with experience of tax litigation will know the guidance is not binding and cannot be relied upon for anything.\u201d<\/p>\n

\u2018A scheme that supports all PAYE workers\u2019<\/h3>\n

Hudson Contract has made strong representations to HMRC to design and implement a scheme that supports all types of PAYE workers.<\/p>\n

Anfield added: \u201cIt is vital to keep money flowing to the self-employed construction operatives who are taxed under CIS and PAYE.<\/p>\n

\u201cTheir significant contribution to the success of countless businesses should not be overlooked by policymakers and advisors at HMRC.<\/p>\n

\u201cWe are hoping the directions can still be amended to include those without regular earnings even if the scheme has already gone live.<\/p>\n

\u201cMany who work in industries hard hit by coronavirus such as tourism, hospitality and, more to the point, construction have been waiting for support and will now be struggling to pay bills and buy food.\u201d<\/p>\n

\n<\/div>","protected":false},"excerpt":{"rendered":"

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