This can sometimes mean that they owe significant payments, either to workers themselves or to HMRC, for breach of national minimum wage or tax rules. They may also find that people who they thought were volunteers have employment rights.
The Office of Tax Simplification (“OTS”) has recently acknowledged this uncertainty and has recommended clearer guidance from HMRC on this area. It has also suggested that a change in the law should be considered to exempt expenses payments for volunteers where these are equivalent to business expenses.
Many charities and voluntary organisations have been calling for more clarity in this area for some time. Greater clarity in this area would be welcome so that charities and voluntary organisations are more certain about their obligations.
There is the risk that, even if guidance or changes to the law are forthcoming, these result in a narrowing of the exemptions that apply to volunteers and voluntary workers, resulting in charities and voluntary organisations paying more tax and in greater numbers of voluntary workers being due the national minimum wage.
It remains to be seen how HMRC and the Government will respond to this call for clarity and whether any guidance or change in legislation will be forthcoming.
If you would like any advice with regard to your volunteering arrangements or to enquire about our volunteer pack, please contact Douglas Mullen at douglas.mullen@anthonycollins.com or on 0121 212 7432.
The Lifeline Project was a well-regarded charity. Failure to carry out the targets within the contracts led the charity into insolvency and resulted in a personal, 7-year disqualification order.
On 23 July, trainees from Anthony Collins Solicitors will host an ‘experience day’, which will involve various activities and presentations, with lawyers and non-lawyers from across the firm.
The Office of the Immigration Services Commissioner (OISC) has launched a new scheme specifically for charities and not-for-profit organisations who want to advise EU citizens on UK settlement.
In the second part of our series on contract management pitfalls, we look at the risks and opportunities presented by payment mechanisms in construction contracts.
Under most construction contracts, the contractor takes on the ground conditions risk. However, a recent case has demonstrated that the risk can fall on the employer.
The UK Government has been consulting on how it should promote social value in its procurements. Here is our response that we submitted to the consultation...
The Tenant Fees Act 2019 came into force on 1 June 2019.
A recent case in the Court of Appeal will no doubt bring a sigh of relief for employers, but a corresponding sigh of disappointment may be uttered for equality and gender balance in the workplace.
This briefing assists response to the consultation paper by outlining the consultation questions, providing some background information and prompting some thoughts and potential answers.
A report published on 29 May by the Institute for Fiscal Studies (IFS) has found that since 2009-10, local government spending on services has fallen on average by 21% in real terms.
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