30 November 2018
Timesheet Deadlines Xmas 2018
TIME SHEET DEADLINES FOR CHRISTMAS HOLIDAYS 2018
read more >
19 November 2018
Senior Management Change
Introducing the new team
read more >
24 July 2018
RICA Board
read more >
31 May 2018
RISQS audit
Zero non conformance or observations
read more >
23 May 2018
Inspiring Change Awards
Proud to confirm we got the only highly commended in our category
read more >
09 May 2018
Rail Partnership Nomination
We have been nominated in the investing people category
read more >
01 May 2018
Infrarail 2018
Having a busy successful time at Infrarail
read more >
24 April 2018
Bronze Award
MPI are proud to be awarded a Bronze Award by the Armed Forces Covenant
read more >
23 November 2017
UK Rail Industry Awards 2018
We’re thrilled to announce the MPI rail team has been shortlisted in two categories
read more >
23 November 2017
Cyber Essentials
We are proud to confirm that we are now Cyber Essentials Compliant.
read more >
19 October 2017
Training the next generation of rail staff
MPI & Siemens working in partnership to fill the rail skills gap
read more >
12 September 2017
Ready for DSEI 2017
The stand is complete and we're ready to go for a great week at DSEI 2017. Come along to Stand N3-40
read more >
09 August 2017
Site machinery and operator services made easy
We've joined together with C.T.A Plant LTD to streamline the way site-based machinery and operators
read more >
02 August 2017
MPI – Setting the Pace and Standards for Quality!
MPI achieve AS9100: 2016 / Revision D from global certification body IMS International – a whole yea
read more >
01 August 2017
MPI at DSEI Exhibition 2017
MPI’s Aviation and Defence team will be exhibiting at Defence and Security Equipment International (
read more >
23 November 2016
MPI Aviation Apprenticeship Success
Tom Roberts was awarded a Bronze in the 2016 World Skills Competition
read more >
26 September 2016
Off-Payroll Reforms
MPI reaction to HMRC's proposed reforms to 'off-payroll' Legislation
read more >
07 September 2016
MPI Contractors Nominated for Rail Staff Awards
Two MPI Rail Contractors have been nominated for Rail Staff Awards in the 'Outstanding Customer Serv
read more >
09 August 2016
WorldSkills Success for MPI Aviation Apprentice
One of MPI’s Aviation apprentices, Tom Roberts, has successfully qualified for the WorldSkills Natio
read more >
15 February 2016
MPI on the move!
From Monday 7th March our Hertford office will be moving.
read more >
25 November 2015
A Job Well Done!
Final commissioning of Earthing of 70 location cases for mcNicholas/Network Rail
read more >
 

News

Welcome to the online news section for everything you want to know about our latest news and events.
 
 

26 September 2016
Off-Payroll Reforms

Who should read this? If you supply your services through your own company, known for the purposes of this legislation as a Personal Service Company, or PSC, you should read this. 

As part of the Government’s wide-ranging reforms of tax law, new legislation is being introduced in April 2017 which will affect ‘off-payroll’ contractors working in the public sector who are not paid directly via that public sector body’s own payroll. These workers are considered by HMRC to be ‘off-payroll’, and include contractors working through their own companies who ultimately feed into the public sector, regardless of how many links there are in the supply chain. These changes are likely to affect large tranches of MPI’s PSC suppliers since a large portion of our supplied workforce feeds ultimately into public sector bodies, examples to include but not limited to: 

• Any contractors where the end hirer is the Ministry of Defence 
• Any contractors where the end hirer is Network Rail 

In such circumstances where the contractor’s company is off-payroll and is considered to be in scope of IR35, the legislation intends to ensure that the entity closest to the PSC will assume responsibility for paying all taxes due on behalf of the PSC worker – as if they were employed. Currently the responsibility for determination of IR35 sits with the PSC itself, along with the responsibility to pay associated taxes. 

First introduced in the March 2016 Budget as part of the 2017 Finance Bill, the legislation intends to ensure that those working through their own personal service companies are legitimate self-employed contractors and not disguised employees. The legislation is intended to ensure that the correct amount of tax is paid in all instances. 

The consultation document itself can be found here.

A new employment status test (EST) will be introduced in due course. The EST is intended to ascertain a contractor’s true employment status. This will in turn determine where the responsibility sits for deducting employment taxes and reporting to HMRC. This test will be applied on an assignment-by-assignment basis – and each assignment must be monitored to ensure ongoing compliance. 

If the EST determination is that an assignment is within scope of IR35, then the party (in this instance, MPI) that pays the PSC assumes responsibility for applying PAYE and National Insurance (NI). The PSC will still be entitled to the existing 5% tax free allowance – but HMRC expect the remainder to be taxed as employment income. Therefore MPI will have to deduct tax and NI at source. 

The practicalities for businesses such as MPI of implementing these changes cannot be underestimated and we have made our objections clear in our responses to the consultation, the links to which can be found at the bottom of this page, along with the consultation document itself. 

Practicalities notwithstanding, MPI believes that the proposed legislation is fundamentally flawed. 

The taxation regime suggested is akin to that imposed on employees – but PSC workers are not employees. They are incorporated bodies. PSC workers have no employment rights save those afforded by their own micro-business. Given that HMRC has advised that there is no plan at the moment to align tax law with employment law, it seems grossly unfair to treat PSC payments as employment income. 

Crucially, we fail to see how it can be appropriate to impose entirely different tax regimes on a worker where two concurrent assignments could be absolutely identical save that one falls under public sector status and the other, under the private sector. Indeed, we question the legality of such an imposition. 

MPI intends to continue to fight against these changes, which we believe to be fundamentally unfair to all parties. 

We will keep you updated via the website but in the meantime, please don’t hesitate to contact me should you wish to discuss the matter further. 

Sarah Grant Finance Director 
Email: sarahd@mpi.ltd.uk Tel: 01992 501111

Read Ted Pearson, Managing Director, full response 
Read Sarah Grant, Finance Director, full response