Working Status – engaging instructors/bar staff etc.

When a person carries out paid work at a club, it is important for the parties to understand and agree the relationship between them. An individual may be an employee; self-employed or a casual worker. 

If, for example, you are considering paying a freelance instructor to help you deliver activities at your club you will need to determine whether that person is:

  • Self-employed/Consultant
  • An employee
  • A Casual Worker

You need to know this because it will determine:

  • What legal rights they have e.g. employee rights
  • Their tax and national insurance position

We are pleased to announce that we have published the following template contracts:

We have also published Guidance on Working Status to accompany the template contracts.

Support for businesses affected by the business rates relief re-valuation

In the March budget government pledged support for businesses affected by the business rate re-valuation. There are two elements to this:

  • £110m to cap the bills of those that will lose Small Business Rate Relief (SBRR); and
  • £300m for local authorities to provide discretionary relief in the hardest hit cases.

In terms of the former we believe it will only apply to those that were eligible for some form of SBRR (i.e. anyone with a Rateable Value of less than £12,000 in 2016/17, which is the upper limit for tapered relief) and who from 1 April 2017 will have a Rateable Value over £15,000 (the new upper threshold for tapered relief). However, it is still not entirely clear how this will work and we will report further once we know more.

As regards the £300m discretionary relief fund, local authorities will be able to provide £300 million of discretionary relief over the next four years to help businesses most affected by the revaluation. The intention is that every billing authority in England will be provided with a share of the £300 million to support their local businesses. Government believes that local authorities are best placed to judge the particular circumstances of local ratepayers and direct the funding where it is most needed to support local economies.

Local authorities will therefore be able to design their discretionary relief schemes and determine the eligibility of ratepayers for support. The schemes will need to clearly set out the criteria that ratepayers across the local authority area, or within specific locations within their areas need to meet in order to qualify for discretionary relief.

It seems therefore inevitable that the criteria for the schemes will be somewhat of a postcode lottery.

Corporation Tax:

As set out in the Autumn Statement 2016, government will cut the rate of corporation tax to 19% from April this year and then again to 17% in 2020.

If you'd like any further information please contact RYA Legal