Archive for the ‘Uncategorized’ Category

New Advice: Employees Paid By Commission

Tuesday, July 15th, 2014

There is a recent European Court Ruling which stated that a worker’s right to be paid annual leave was infringed when his future remuneration was reduced because he had been unable to earn commission while on holiday.

What this means is, when an employee’s take home pay includes a significant element of commission they should not be paid on just purely their basic when away on holiday, but their holiday pay should reflect both basic pay and commission. The majority of employers pay just basic pay when an employee is on annual leave so the potential impact and cost of this ruling is huge.

For example, a salesperson earning £10k commission per annum with the statutory 5.6 weeks holiday entitlement would result in circa £1k additional holiday pay. The higher the commission the higher the liability.

All employees who fall into that category could make a claim, and the claims could go back up to 6 years so therefore the above example with an employee who had worked for 6 or more years would be in excess of £6k. Also in terms of any staff who have been employed for less than 6 years, failure to act now may mean that their entitlement continues to go on and on.

The above will probably be highlighted in the press soon and legal companies will try to encourage staff to make claims.

We recommend if you fall within this category you act now to mitigate any potential claims and consider all of your options.

This is a legal issue, however we can put you in touch with an employment solicitor if you need assistance.

Spring Budget Statement 2014

Thursday, March 20th, 2014

In order to keep you up to date with all of the announced changes in the March Budget, we have put together a ’2014 Budget Report Summary’.

Click here to read the full summary.

Here are some of the elements we identified as most relevant to our clients:

Annual Investment Allowance (AIA) doubled to £500,000 and extended to the end of 2015.

Full rate of corporation tax is now 21%.

Research and development (R&D) tax credit payable to loss-making SMEs to increase from 11 per cent to 14.5 per cent from April 2014.

The choice of tax efficient investment vehicles grows wider every year with SEIS, EIS, VCT and now SI Relief. We expect the changes announced today to drive own the cost of these vehicles and refocus them on fuller risk investments.

New rules aimed at certain industries including recruitment and employment agencies will treat workers as employees rather than self-employed.

Personal tax threshold to increase to £10,500 from April 2015.

40p income tax threshold to increase to £41,865 from April 2014 and then to £42,285 from April 2015.

Cash and shares ISAs to be merged, with tax-free limit increased to £15,000 from 1 July.

Total pension saving taken as lump sum doubled to £30,000, while taxable part of pension pot taken as cash on retirement to be charged at normal income tax rate.

Tree launch website

Wednesday, November 4th, 2009

A big thank you to all the clients (friends) that have given time up to add to our website and look at what Creative Spark have achieved.

New Building

Thursday, October 15th, 2009

Tree has opened it’s new doors in a newly refurbished cottage in Kelvin Street, Manchester.