GMB Calls On Virgin Media To Step In To Row On Tax & NI Liability At Kelly Communications After Wages Were Paid As ‘Expenses’
GMB members employed by Kelly Communications to install Virgin Media TV want the employer to pay tax liabilities on wages paid as ‘expenses’ in dodgy wages scheme
19 Feb 2008
GMB members employed by Kelly Communications in depots across the UK installing Virgin Media TV have learned that they may face huge tax bills at the end of the financial year as a result of a payment scheme introduced by Kelly Communications whereby wages were paid as ‘expenses’ and not subject to tax and National Insurance. GMB has received advice that this payment scheme may not be proper and that tax and National Insurance may be levied on the ‘expenses’.
Under a scheme implemented by their employer, Kelly Communications, employees contracts have been subcontracted out to employment agencies, which have been paying employees wages in the form of expenses to save the company money. Kelly Communications told GMB members that the scheme was legal and was subject to a disclaimer by Her Majesty Revenue & Customs (HMRC).
When GMB investigated the matter it found that Kelly Communications employees were being required to sign expense declarations for up to a year in advance. They were also required to sign expenses forms for expenses that had not been incurred. With the backing of GMB, employees at the Kelly Communications depot in Bournemouth launched a successful challenge against the scheme. GMB members in Bournemouth have been offered the opportunity to return to work directly for the company. However, the company has failed to offer the same opportunity to staff at other sites including Woolwich, Havant, Southampton, Croydon and Bromley. Kelly Communications has attempted to bar GMB from gaining access to speak with its members across the country. In addition, the company has served notice to de-recognise GMB at it’s Brighton depot, in retaliation for GMB whistle blowing on the scheme and for the members working there refusal to join in the scheme.
Rob Macey, a spokesman for the GMB Commented, “GMB believe that Virgin Media has subcontracted out its responsibility for these employees. GMB members are the public face of Virgin Media. They drive Virgin Media branded vans, they wear Virgin Media uniforms, and they install Virgin Media equipment.
GMB is asking Virgin Media to become directly involved in this dispute about the proper payment of wages and National Insurance. Kelly Communications must pay any tax and National Insurance liabilities resulting from their payment scheme. This dodgy scheme must be withdrawn and the employees must be offered the opportunity to be direct employees of Kelly Communications.
Virgin Media should also ensure that GMB members employed by Kelly Communications have proper trade union rights and a fair deal for their work without resort to dodgy tax schemes as one would expect when working for such a respected brand.”
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Contact: Rob Macey, GMB Brighton on 07710 618908/01273 570126 or Charles Harrity, GMB Brighton on 07977 518042 / 01273 570126 or GMB Press Office: Steve Pryle on 07921 289880 or Rose Conroy on 07974 251823.
