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| HMRC comment on agency workers tax case |
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The Court of Appeal has dismissed HMRC's appeal against the decision of the High Court in a case concerning agency workers' entitlement to statutory sick pay (SSP). In Commissioners for HMRC V Thorn Baker Limited and others ("Thorn Baker"), the decision of the High Court (given on 14 July 2006) that SSP is not payable to agency workers whose contract with the agency is for a specified period of three months or less, still stands. However, in response to the Court of Appeal decision, HMRC state that agencies should note that their workers can become entitled to SSP if, in a single contract:
Agency workers whose contracts are for three months or less can also become entitled to SSP if two or more such contracts with the same agency are separated by eight weeks or less, (56 days) and
The ruling applies to agency workers only. Other short-term contract workers are unaffected and remain entitled to SSP. HMRC, the Department for Work and Pensions (DWP) and the Department for Business, Enterprise and Regulatory Reform (formerly the Department of Trade and Industry (DTI)) will be considering the implications of the judgement and further information will be published in due course. Link HMRC: Judgement in the case of Commissioners for HMRC v Thorn Baker and others
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About The Author  Sarah Laing Sarah is a Chartered Tax Adviser. She has been writing professionally since joining CCH Editions in 1998 as a Senior Technical Editor, contributing to a range of highly regarded publications including the British Tax Reporter, Taxes - The Weekly Tax News, the Red & Green legislation volumes, Hardman's, International Tax Agreements and many others. She became Publishing Manager for the tax and accounting portfolio in 2001 and later went on to help run CCH Seminars (including ABG Courses and Conferences). Sarah originally worked for the Inland Revenue in Newbury and Swindon Tax Offices, before moving out into practice in 1991. She has worked for both small and Big 5 firms. She now works as a freelance author providing technical writing services for the tax and accountancy profession. |
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Article Added Wednesday, 04 July 2007 | 1156 Hits |
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