The Chancellor of the Exchequer recently presented the first Budget of the new parliament and indeed the first Conservative budget since November 1996. With the REC’s Report on Jobs subsequently reporting yet again that businesses are struggling to fill vacancies, the challenge for the Chancellor was to produce a Budget that meets the demands of the UK economy.
Here at the HEADS we watched intently for any changes or announcements affecting the recruitment industry. Here’s what you need to know:
- National Living Wage: The government will introduce a new National Living Wage (NLW) for workers aged 25 plus by introducing a new premium on top of the National Minimum Wage (NMW). From April 2016, the NLW will be £7.20 and the government have set a target of £9 by 2020.
- As part of a drive to clampdown on tax avoidance, HMRC have published a new consultation on restricting the use of travel and subsistence by employment intermediaries.
From April 2016, the NMW will be £7.20 for over 25’s.
We can expect both these announcements to have a significant cost impact on Companies that use Agency Workers.
HEADS DO NOT USE travel and subsistence, but expect the new consultation to restrict the use by recruitment agencies and perhaps force the cost of their services up and onto their clients?