Temporary workers - your pension obligations
If you’re employing temporary workers for the summer season don’t forget that they have the same rights to join your workplace pension as permanent employees. What do you need to do?
Pension auto-enrolment
Workplace pensions have been around for over a decade. Despite this, every year some employers forget that temporary employees they take on, say during the summer period, have the same rights to workplace pensions as their full-time workers. Because of this HMRC is currently running a campaign to remind employers.
Assess and advise
If you’re an employer you must assess temporary staff for their right to be enrolled in your workplace pension scheme each time you pay them, even if they only work for you for a few days.
If you don’t assess your employees for entitlement to join your workplace pension it can result in a warning from HMRC or The Pensions Regulator. This can escalate to a fine of £400 initially and then daily penalties of between £50 and £10,000.
You can avoid having to assess your employees if they will work for you for no more than three months. Do this by using the auto-enrolment postponement procedure.
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HMRC attacks legitimate staff travel costs
The Upper Tribunal recently ruled on a dispute between HMRC and British Airways (BA) regarding the free accommodation it provided for its employees. HMRC said it was taxable, BA disagreed. What was the outcome?
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Should you voluntarily payroll benefits in kind?
The window to sign up to voluntarily payroll non-mandatory benefits in kind for 2027/28 will open in November. Is it worth volunteering to pay HMRC earlier than required or should you wait until it becomes mandatory in 2028/29?
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Why is HMRC checking PVA more often?
Your business imports goods and accounts for VAT by applying postponed VAT accounting (PVA) on its returns. HMRC is scrutinising returns and issuing large assessments in some cases. What can you do to reduce the risk of getting it wrong?
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