The last 18 months have been an unusual time for employers, to say the least. Not only have they had to contend with the challenges of COVID-19, but they’ve had to get to grips with new rules and regulations as a result of Brexit. Currently, there’s a lot going on in the world of employment, so we thought it would be useful to summarise some of the latest news for employers.
Changes to ‘right to work’ checks
The deadline for applications to the EU Settlement Scheme was on 30th June. In theory, EU citizens who wanted to remain in the UK should now have settled status or possibly UK citizenship.
However, as an employer, you now have to make different checks when employing someone from the EU, EEA or Switzerland. EU passports or ID cards are no longer valid proof of the right to work in the UK, unless the potential employee is from Ireland. Instead, you have to use a dedicated online service that allows you to check an employee’s right to work. You will need their date of birth and the ‘share code’ they got when proving their right to work.
That said, you do not have to make retrospective checks on the status of EU, EEA or Swiss citizens you employed before 1st July 2021. However, it’s worth noting that some people will have a further opportunity to apply for the EU Settlement Scheme if they had reasonable grounds for missing the 30th June deadline. This document explains what you need to do to in such a situation.
We must emphasise that it is extremely important to carry out a right to work check for every person you employ. If you employ people illegally without carrying out the correct checks, you can be fined up to £20,000 per person.
EU Settlement Scheme scheme late applications
If you have employees who have not yet applied to the EU Settlement Scheme, we strongly recommend you encourage them to do so. There are many different ‘reasonable grounds’ for missing the deadline. These include:
- Having a medical condition that prevented you from applying
- Not having internet access or access to the relevant documents
- Difficulty accessing support to apply because of COVID-19
- Compelling practical or compassionate reasons.
This list is not exhaustive, but you can find more detail here.
P11D(b) penalty warnings
You should have filed returns for P11D(b) Class 1A National Insurance contributions for 2020/21 by 6th July. If you have not, you will soon receive a penalty warning. If you receive such a letter, it’s important to file your outstanding return as soon as possible. You can file using payroll software, HMRC’s PAYE online service, or HMRC’s Online End of Year Expenses and Benefits service.
Latest news for employers: future updates
If you are an employer and a THP client, and you’d like us to cover a particular topic in future editions of this ‘Latest news for employers’ update, please drop us a line.
About Jon Pryse-Jones
Since joining THP in 1978, Jon Pryse-Jones has been hands on with every area of the business. Now specialising in strategy, business planning, and marketing, Jon remains at the forefront of the growth and development at THP.
An ideas man, Jon enjoys getting the most out of all situations, “I act as a catalyst for creative people and encourage them to think outside the box,” he says, “and I’m not afraid of being confrontational. It often leads to a better result for THP and its clients.”
Jon’s appreciation for THP extends to his fellow team members and the board. “They really know how to run a successful business,” he says. He’s keen on IT and systems development as critical to success, and he continues to guide THP to be at the cutting edge and effective.