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Author Archives: Peter Gillespie

  1. VAT Exemption for Care Division.

    QS Recruitment: Finance Director Announcement

    Tony Daly, Finance Director of QS Recruitment stated “we are pleased to announce that after considerable investment in professional advice regarding the VAT Exemption ruling in Section 6.5 of VAT Notice 701/57 we are now positioned to provide our Care division customers with supplies exempt from VAT”.  This decision has been based on our (and our advisors) understanding of HMRC’s current guidance which is subject to change.

    The exemption only applies to the supply of “staff” so the workers must be under the direction and control of the client. Our supply must be of Nursing Staff, Nursing Auxiliaries or Healthcare Assistants who are either registered or are directly supervised by someone who is. For the benefit of doubt, a Nursing Auxiliary or Healthcare Assistant is defined in the Notice as being someone who is not enrolled on any register of medical or health professionals but whose duties must include the provision of medical, as well as personal, care to patients.  is based on the company’s understanding of HMRC’s current guidance which is subject to change

    At QS Recruitment we observe that direction, control and supervision of the client in this context is tested by adherence to the following conditions:

    • The services are supervised by a registered health professional AND the supervisor is professionally qualified to perform and supervise the services;
    • The services are supervised by a registered health professional AND the supervisor is professionally qualified to perform and supervise the services;
    • The services require supervision by a registered health professional, and are provided predominantly to meet the medical needs of a client;
    • The supervisor has a direct relationship with the staff performing the services, and is contractually responsible for supervising their services;
    • A qualified supervisor is available for the whole time that the care services are provided;
    • No more than 2,000 hours per week of staff time are supervised by a single health professional;
    • A supervisor has a say in the level of care to be provided to the client;
    • The supervisor must be able to demonstrate that they monitor the work of the unregistered staff.

    The concession does not apply to the supply of general workers who only provide personal services or where they work in care homes without nursing where supervision by a health professional is not required to provide the service. 

  2. Zero hours contracts

    Zero Hours contracts common in the care industry

    Zero hours contract workers lack clarity over employment rights says Acas paper

    A report written for the Arbitration Conciliation and Advisory Service (ACAS) has highlighted the lack of awareness of employment rights for zero-hours contracts workers.

    Based on an analysis of 70 telephone calls a week made to its helpline by employees and employers, the discussion paper ‘Give and Take? Unravelling the true nature of zero-hours contracts’ reveals a lack of clarity over employment status, and lack of awareness of employment rights to be one of “two broad themes”.

    The first theme was a lack of clarity over employment status, and a lack of awareness of employment rights. The second reflected feelings both of fear about future earnings and that they were being treated unfairly, wrote Acas senior policy advisor and the paper’s author Adrian Wakeling.

    Wakeling says: “There were numerous calls to the Acas helpline, for example, from both workers and employers unsure if people on zero-hours contracts are entitled to holiday leave and pay and how this is calculated.” Some workers on zero-hours contracts even believed they were permanent employees, he adds.

    Acas chair Sir Brendan Barber added: “There appeared to be a lack of transparency on the terms of their contractual arrangements.”

    According to the Recruitment & Employment Confederation (REC), anyone working on this flexible basis will have legal entitlements to:

    • National Minimum Wage
    • Automatic enrolment for pensions
    • Statutory holiday pay
    • Protection from unlawful discrimination
    • Working time rights
    • Protection from unlawful deductions from wages

    Barber said that the sense of unfairness and mistrust went beyond the use of exclusivity clauses [which bar them from working for other employers].

    “A lot of workers on zero-hours contracts are afraid of looking for work elsewhere,” Barber went on to say, “turning down hours, or questioning their employment rights in case their work is withdrawn or reduced. This deep-rooted ‘effective exclusivity’ can be very damaging to trust and to the employment relationship.