APSCo welcomes clarity on job retention scheme and help for the self employed

Responding to last night’s release of further detail on the Job Retention scheme which confirmed that it would apply to agency workers, Tania Bowers, Legal Counsel and Head of Public Affairs said:

“We are very pleased that the recruitment sector now has some clarity over how the Job Retention Scheme will work. There is clear reference in the guidance to those working through an employment business and the guidance clearly sets out how to calculate payments for workers whose pay varies (i.e. zero hours and agency workers). The other good news is that the grant will also cover the cost of NI and pension contributions. The cap is in respect of the employee’s salary – employers NI and minimum statutory pension payments paid in respect of that salary can be claimed back on top of the £2,500.”

“We also welcome the package announced for the self-employed although contractors working through a PSC in the professional sectors served by APSCo members are unlikely to benefit as they will generally be generating profits above the £50,000 trading profits cap. ” We noted the Chancellor’s comment on the fairness of the differential rates of tax for the self-employed and how this could be subject to review. We have long called for a review of employment status for tax and rights and a separate definition of Independent Professional for highly skilled contractors.”