welcome to

WELCOME TO...

Paula Cain, Chief Executive,

Halton Chamber of Commerce

Our First Two Minute Member Spotlight...Peter AtkinsonJackson Stephen Accountants and Business Advisors

Our Second Two Minute Member Spotlight...Duncan ReichHillcrest Hotel

Presentation byNeeta Laing, Laing LegalJane Swain, Lymm Tax Services

The Mersey Gateway Project – employment law and tax perspectives

The proposed bridge tollsThe proposed bridge tolls

The do’s and don’t’s from an employment law and tax perspective

9 September 2014

The do’s and don’t’s from an employment law and tax perspective

9 September 2014

Outline of sessionOutline of session

• The proposed tolls • Options for an employer and employees• Employment contracts and policies• Managing employees during the process• Paying the tolls • Employment law implications• Tax implications

The Mersey Gateway ProjectThe Mersey Gateway Project

• Work started on 7 May 2014• In Autumn 2017 a new six lane toll bridge over

the towns of Runcorn and Widnes• Will relieve the congested and ageing Silver

Jubilee Bridge• Both the Mersey Gateway Bridge and the

Silver Jubilee Bridge will be tolled• Both bridges will be free for Halton residents

Proposed tollProposed toll

• Halton employees will be free of charge – residents still need to register to use the bridges – small charge

• The bridges will be tolled when the new bridge opens in 2017

• No toll booths – will use an “open road tolling system”

• Standard toll charge is £2 for a one-way trip in a car or a small van

Reducing the costReducing the cost

• For non-Halton residents there are ways of reducing the cost of tolls

• Monthly pass to cap the cost or register as a stickered user with the toll provider to save up to 10% on the cost of each trip

Reducing the costReducing the cost

• Monthly unlimited travel pass - £90 per month – unlimited travel across either bridge at any time of day

• Monthly off-peak pass for £60 per month – 10am to 4 pm and 7 pm to 7am Monday to Friday and all times Saturdays, Sundays and public holidays

Reducing the costReducing the cost

• Video registered user – for a one-off £5 fee register and 5% of each trip

• Sticker registered user – for a £5 one-off fee get a special sticker saving 10% for each trip

• Once registered, as you drive across each bridge toll payment will be taken from your registered account at the point of crossing

• If you register for video or sticker then can pre pay an amount into your account

Other transportOther transport

•A free bus service connecting Runcorn and Widnes town centres•Local buses to use the silver jubilee bridge•Local bus services will not have to pay a toll (price of bus ticket should not go up)•Cycle routes will be improved

Consequences for employersConsequences for employers

•Whilst the works are ongoing, there is likely to be road works and travel disruption •Delays – employees may arrive late or need to leave early•Internal policies – absence reporting

Employer considerationsEmployer considerations

•Workforce planning – new recruits •Explain the tolls charges•Register your employees – consider paying the registration fee?•Sales force – incur additional charges and internal expense mechanisms

Flexible working requestsFlexible working requests

•More requests for flexible working – off peak•Eligibility – 26 weeks’ service•Employee triggers the procedure by making a written request•The employer has a 3 month decision period

The right to request flexible workingThe right to request flexible working

• 3 months to consider the request, discuss it with the employee and notify the employee of the outcome

• Time can be extended by mutual agreement• Employer must deal with the application in a

“reasonable manner”

The right to request flexible workingThe right to request flexible working

• Employee can complain to an employment tribunal e.g. – if the employer has not dealt with the application

in a reasonable manner– fails to rely on one of the statutory grounds when

refusing the application e.g. detrimental impact on performance or quality

– such claims are typically linked with discrimination

Case lawCase law

•Clarke –v- Telewest Communications •Giles –v- Cornelia Care Homes

– Constructive dismissal and sex discrimination claims upheld

The law The law

• Implied duty of trust and confidence• Discrimination – the Equality Act 2010• Consider internal policies- absence, lateness,

disciplinary and grievance

The law The law

• The Equal Pay Act 1970 was originally enacted at a time when it was not uncommon for employers to give different rates of pay to men and women doing the same job (Equality Act 2010)

• A significant gender pay gap still exists• Men and women should receive equal pay for equal

work

Contracts of employmentContracts of employment

• Section 1 of the Employment Rights Act 1996 sets out the minimum particulars of employment – hours of work and place of work

• Must be given no later than 2 months after employment begins.

• Employee can complain to the employment tribunal

Contracts of employmentContracts of employment

•Changing terms of employment– An employee’s terms will change during the

employment relationship– Some changes will be uncontroversial (pay rise), other

changes the employee will be less willing to accept– It is important for employers to ensure the change is

legally binding

Contracts of employmentContracts of employment

•Variation

- if there is any change, the employer must give the employee a written statement containing the change at the earliest opportunity but in any event no later than one month after the change.

•Consult with the employee •Consent to the changes

The Mersey Gateway ProjectThe Mersey Gateway Project

• Manage the project within employee management

• Communication links with employees • Email contact • Notice board• Consider alternative start and end times and a

more flexible approach

Other optionsOther options

•Improvements to public transport•Improvements to walking and cycling facilities – bicycle scheme?•Car sharing •Better investment, economic regeneration and more businesses may mean more employees will be attracted to the area

BackgroundBackground

• Everything is taxable• Deductible for corporation Tax• Three ways to meet cost

Employer optionsEmployer options

•Increase salaries•Buy season tickets•Reimburse cost 

Increase salaryIncrease salary

• 12 x £90 per month season ticket = £1,080 per year

• Need to gross up• Gross will be different for different

employees.

Cost to employerCost to employerSalary level Yearly increase required Monthly 

increase required

< £10,000 £1,227 £107

£10,000 - £42,000 £1,588 £132

£42,000 - £150,000 £1,862 £155

> £150,000 £2,038 £170

Cost with NICCost with NIC

Salary level Yearly increase required

Monthly increase required

Annual employers NIC at 13.8%

  < £10,000 £1,227 £107 £169£10,000 - £42,000 £1,588 £132 £219£42,000 - £150,000

£1,862 £155 £257

> £150,000 £2,038 £170 £281

Average cost per employeeAverage cost per employee

Gross salary £1,588Employer’s NIC £219Total cost £1,807Cost net of 20% Corporation Tax relief

£1,446

Season ticketSeason ticket

• Buy season ticket• P11D • Employers NIC• Employee pays tax on season ticket cost

Expense claimExpense claim

• Reimbursing cost• Same as salary• Payroll• PSA

Other optionsOther options

• Business journeys – not taxable• Company car• Car sharing • Works buses

BenefitsBenefits

• Benefits for people and businesses• 470 permanent full-time jobs during the

construction phase• 4,640 new jobs due to operation of Mersey

Gateway, regeneration activity and inward investment

• Reduction in journey times and less congestion

Facilitated Networking Session...

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