Agenda item

A presentation will be provided as part of this item on Corporate Risk 1.7 (If the Council is not compliant with the HRMC IR35 regulations regarding the employment of self-employed personnel then there is a risk of large financial penalties).

[Mrs. A. Wright CC having declared an interest which might lead to bias in this item left the meeting at this point and did not return to the meeting.]

The Committee considered a report of the Director of Corporate Resources, the purpose of which was to provide an overview of key risks faced by the Authority and the measures being taken to address them.  A copy of the report marked ‘Agenda Item 9’, is filed with these minutes.

The Committee also received a presentation on Corporate Risk 1.7 on the Corporate Risk Register: If the Council is not compliant with the HMRC IR35 regulations regarding the employment of self-employed personnel then there is a risk of large financial penalties. A copy of the presentation slides is filed with these minutes.

Presentation - Employment Status for Tax, ‘Off-Payroll’ Working (IR35) for Public Authorities

i)             Since April 2017, public authorities (and agency, or third party paying the intermediary) have had the responsibility of determining an individual’s employment status and whether off-payroll working rules apply and ensuring that tax and National Insurance contributions are paid as necessary;

ii)            A number of steps had been taken by the County Council to ensure its compliance with the rules, in particular improving the guidance and support for managers to enable them to identify where IR35 might be relevant;

iii)           A HR Compliance Officer had been appointed and would be dedicated to the tasks associated with ensuring the Council’s compliance with IR35 regulations;

iv)           Reed agency had been contracted as a managed service for agency workers. This included Reed managing the payroll for those workers;

v)            A clear process had been set-up for new engagements and checks were being carried out by managers to evidence IR35 compliance.

Prior to consideration of the Corporate Risk Register both Mr. S. Sheahan CC and Mr. J. Coxon CC each declared a personal interest in this item as they owned property within close proximity to the proposed HS2 route.  Both members stated that, should the Committee debate matters relating to HS2, in particular the location of the line, they would consider the matter a “personal interest that may lead to bias” and leave the room.

Risk Register

vi)           Risk 2.3: Challenges caused by the Welfare Reform Act 2012 and the Welfare Reform and Work Act 2016 - A Member expressed concern on the impact for local residents and the County Council regarding the Government’s delay to move existing claimants from the legacy benefits to Universal Credit.  The County Council, along with other Local Authorities, were awaiting further direction from the Secretary of State on this matter;

vii)          Emerging Risk: Climate Change - It was acknowledged that the County Council’s target to be carbon neutral in its operations by 2030 was ambitious and would require support from all parties involved for this to be achieved.  Members supported the inclusion of this risk on the Corporate Risk Register to ensure this could be properly monitored.   The Director advised that a report setting out initial proposals to meet this target would be presented to the Cabinet in the Autumn;

viii)        Members requested that a presentation be provided at its next meeting on corporate risk 1.3 (If the Council fails to maximise developer contributions, then there could be a failure to fund corporate infrastructure projects).

RESOLVED:

(a)         That the current status of the strategic risks facing the County Council be approved;

(b)         That the content of the presentation provided on corporate risk 1.7 – If the Council is not compliant with HMRC IR35 regulations regarding the employment of self-employed personnel then there is a risk of large financial penalties – be noted;

(c)          That at the next meeting of the Committee a presentation be provided on corporate risk 1.3 (If the Council fails to maximise developer contributions, then there could be a failure to fund corporate infrastructure projects);

(d)         That the updates provided on Climate Change and HS2 Phase 2B be noted;

(e)         That the update provided on the risk management health check be noted.