What if a contractor is deemed to be employed?

This may be a good idea – whatever name they are given, it is essential that MHFAs are empowered to take a proactive approach to organisational mental health and that they have the bandwidth to be able to discharge their responsibilities.  The name should reflect the culture of the organisation, the key aspect is awareness and accessibility – identifying a name for your company that supports this is key.

The Home Office has provided useful guidance on how to carry out a compliant Right to Work check using the temporary adjustments in place for Covid-19. In summary:

• You will need to ask the job applicant to send you digital copies of their original documents, for example by scan, photo or mobile app.
• Hold a video call with the job applicant and ask them to show their original documents on camera so you can check them against the digital copies you have already received.
• On the date you made the check, record that you have done this by using the following wording “adjusted check undertaken on [insert date] due to Covid-19”. Evidence of right to work checks still need to be held securely either in paper or electronic format.
• You can use the online RTW checking service where the job applicant has Biometric Residence Permit or pre-settled or settled status under the EU Settlement Scheme. You should do this whilst on the video call with the applicant/employee, and you must first obtain their permission to view their details on this scheme.

• Audit
  • Identify your off-payroll contractors
  • Determine the status of off-payroll contractors
    • CEST – HMRC employment status checker for tax purposes
• Communication – liaise with affected workforce
• Contracts – get them compliant
• Consider the Ward Hadaway toolkit

Office holders who provide services under an intermediary (such as a service company consultancy agreement) and whose services relate to the office held, would fall under the IR35 regime and must be assessed accordingly.

We have developed a toolkit to assist with compliance. The Toolkit contains a specimen contract; detailed guidance; step by step guides and flowcharts; details of the factors to take into account for the status determination test; procedures for challenging the determination; and standard letters for the process.  Click here to fill in a form and register your interest in the Toolkit, which contains:

1. Detailed guidance in the form of Key Facts
2. Employment status checklist
3. Employment status assessment flowchart
4. Status questionnaire and guidance
5. Letter confirming self-employed status (agency)
6. Letter confirming employed status (agency)
7. Letter confirming self-employed status (direct with PSC)
8. Letter confirming employed status (direct with PSC)
9. Status disagreement process guidance
10. Status disagreement process flowchart
11. Letter confirming outcome of status disagreement process
12. Consultancy agreement