Specialist providers alarmed by HMRC’s latest communiqué on sleep-in payments

[vc_row][vc_column][vc_column_text]Following the Royal Mencap Society v Tomlinson-Blake Court of Appeal judgement on sleep-in payments, the Voluntary Organisations Disability Group (VODG) and wider sector bodies, have called on government to make a decision and to be clear about what changes it is proposing ahead of wider consultation.

VODG says the latest communication from HMRC, which VODG understands is reaching a large number of social care providers, is adding confusion and raising more unanswered questions. A HRMC communication seen by VODG includes the following points:

“HMRC have decided that it is appropriate to continue to operate the Social Care Compliance Scheme (SCCS) allowing participating employers to complete a self-review, taking the judgement into consideration, and make a declaration to HMRC. All original timeframes and requirements of the scheme remain in place;

Employers must complete their self-review and submit their declarations to HMRC by no later than 12 months of their application to the SCCS or 31 December 2018, whichever is sooner;

All non-sleeping time arrears must be paid before employers return their declaration;

Any sleeping time arrears must be paid to workers within three months of returning the declaration or by 31 March 2019, whichever is sooner; failure to adhere to the terms or timeframes of the SCCS, or withdrawing from the SCCS may result in HMRC opening an investigation into your pay practices.

“Department for Business, Energy & industrial Strategy (BEIS) are currently reviewing their guidance in Calculating the Minimum Wage and this will be published in due course. Employers will be issued with an updated SCCS Employer guide once the revised Calculating the Minimum Wage is available.

“If, during the course of your review you assess there has been an underpayment of National Minimum Wage, either for any sleep-in-shifts or for other reasons, HMRC will continue to allow Social Care sector employers to deal with the tax implications of these arrears using the Alternative PAYE Arrangement (APA).”

Commenting on the latest developments VODG chair Steve Scown said providers were waiting for official guidance from the Department of Business, Energy and Industrial Strategy.

“We have worked with officials to inform the development of policy options yet are today (Friday, August 17) surprised to learn that providers are opening a confusing communication from HMRC,” said Mr Scown.

“Providers expect clarity not uncertainty from HMRC. We are calling on government to explain why HMRC have jumped the gun and acted before BEIS have issued official guidance.”[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]“The redevelopment of the previous site, clubhouse and new properties at Arun House means that we are consistently ensuring that we are offering the latest in retirement living design and functionality, underpinning the lifestyle our residents enjoy,” said Mr Crawford.

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