30
May

Holiday entitlement

Almost all full-time workers in the UK are legally entitled to 5.6 weeks’ (or 28 days) paid holiday per year. This is known as their statutory leave entitlement or annual leave. Legally, employers can include bank holidays in this total although not all employers do this. Employers are also free to provide additional non statutory holiday entitlement.

An employee’s actual statutory entitlement depends on how many days you work per week but all employees including part-time, agency or casual workers are entitled to holiday. There is no statutory entitlement to holidays for the self-employed and there are special rules for those in the armed forces, police and civil protection services.

Part-time workers are entitled to a pro-rata entitlement. For example, 5.6 days holiday per year if they work one day a week. Employees who work irregular days or hours or that are in the first year of a new job can use HMRC’s holiday entitlement calculator to work out how many days they are entitled to.
   
HMRC is clear that workers have the right to:

  • get paid for leave;
  • build up holiday entitlement during maternity, paternity and adoption leave;
  • build up holiday entitlement while off work sick;
  • request holiday at the same time as sick leave.

Any employee that has a problem with their holiday pay should try and resolve the issue with their employer. If this does not work, there are a number of ways to resolve the dispute including contacting ACAS or taking the employer to an employment tribunal.

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29
May

GDPR and Data Protection Act 2018 now in force

The EU General Data Protection Regulation (GDPR) came into force on 25 May 2018, along with most of the provisions in a new Data Protection Act 2018 (including those provisions relevant to processing in the employment relationship). The previous Data Protection Act 1998 has now been repealed. The new data protection laws give people more control about how their personal data is used, shared and stored and they require organisations to be more accountable and transparent about how they use such data.

As well as producing a wide range of new and updated guidance for organisations to assist them with their GDPR compliance, which is all available on its website, the Information Commissioner’s Office (ICO) has launched a long-term campaign, “Your Data Matters”, to help people understand why their personal data matters and how they can take back control.

The ICO’s resources for organisations include:

  • Guide to the GDPR
  • More detailed guidance on specific GDPR areas, covering: determining what is personal data; the right to be informed; legitimate interests; consent; documentation; automated decision-making and profiling; data protection impact assessments (DPIAs); and children and the GDPR
  • Data protection self-assessment toolkit
  • GDPR FAQs
  • GDPR myth-busting blogs
  • Lawful basis interactive guidance tool
  • Personal data breach reporting resources
  • Guide to the data protection fee (see below).

The Data Protection (Charges and Information) Regulations 2018 also came into force on 25 May 2018 and they have introduced a new data protection charging structure for data controllers. There is no longer a requirement to pay the ICO a notification fee. Instead, there are three tiers of charges which apply unless all processing undertaken by the data controller is exempt. For very small organisations with no more than ten members of staff or which have a maximum turnover of

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CGT base cost uplift on death

Special rules apply to assets when they are passed to a beneficiary after the death of the benefactor. In some cases Inheritance Tax may be due on the transfer. However, there can also be a hidden benefit known as a Capital Gains Tax (CGT) uplift on death (see details of the benefits below).

The CGT uplift mostly benefits a surviving spouse or civil partner. In this case, the transfer will be exempt from Inheritance Tax and the assets will be passed to the surviving spouse for CGT purposes at the probate market value. For example, a spouse may have invested in an investment property or portfolio of shares many years ago and built up a large, unrealised capital gain. The transfer of these assets on death will mean that the surviving spouse will be treated for CGT purposes as if they had acquired the assets concerned at the current market value on the date of their spouse’s death.

Planning note

The legislation only applies to assets, including shares, comprised in a person’s estate. There is no corresponding provision for assets which are the subject of a lifetime transfer. This ‘relief’ is obviously difficult to anticipate and proper planning must be put in place to ensure that assets qualify. It is important to take proper advice to consider any CGT and / or Inheritance Tax savings.

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