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Non-departmental funding body UK Research and Innovation (UKRI) must pay HM Revenue & Customs (HMRC) £36m in back-dated tax.

As reported in Computer Weekly, UK Research and Innovation (UKRI), revealed in its annual accounts for 2021/21 that HMRC deemed that it had misclassified contractors’ IR35 status and as a result, owed £36m in tax.

UKRI is a body sponsored by the Department for Science, Innovation and Technology (DSIT). It is the latest public sector body to have mismanaged the off-payroll working rules.
The tax bills issued to public sector bodies due to non-compliance now amount to approximately £300m.
IR35 specialist Qdos CEO, Seb Maley, commented: “Public sector bodies have now been hit with around £300m worth of IR35 bills. It’s astonishing. These bodies should be leading by example, showing private sector businesses how to successfully manage the off-payroll working rules.
“I’m not sure what’s more worrying – the sheer size of this bill or the fact that it’s something we’ve come to expect in the public sector. And I can’t help but wonder who’s next.
“It’s difficult not to see the irony in this one. As a body that champions innovation, getting to grips with the off-payroll working rules shouldn’t be an issue for UKRI in theory.
“It’s wooden dollars in the public sector, but if a private sector business was hit with a £36m bill, it could be curtains. With this in mind, private sector firms must prioritise their compliance.”
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UKRI hit with £36m IR35 bill, taking non-compliance in public sector to £300m

Experts say fear could be keeping over 50s from returning to work, as economic inactivity (the number of people not in the labour force) amongst 50-64 year olds remains eight times higher than pre-pandemic levels.
50-64 year olds comprise a staggering 71% (298,429 of 422,241) of all economically inactive people (between the ages of 16-64) in the UK, according to data from December 2022-February 2023 released as part of the Labour Force Survey from the Office for National Statistics (ONS).
This figure has declined from the record high of 386,096 economically inactive 50-64 year olds recorded in May-July 2022. Whilst the decline suggests incentives to encourage people in this age demographic to return to work, such as Chancellor Jeremy Hunt’s Spring Budget ‘returnships’, are having some effect, the latest ONS findings represent a big problem, nonetheless.
There are a number of reasons why those aged over 50 may be reluctant to re-join the workforce, from individuals who are suffering with long-term sickness, to those who have chosen to enjoy an early retirement. One factor, however, that has perhaps been overlooked, is that fear could be preventing many over 50s from returning to work.
Career and talent management experts, Right Management, suggest that ‘career fear’ amongst over 50s relates to feeling left behind and not having a clear role within an organisation’s workforce.
Sarah Hernon, Principal Consultant at Right Management said: “We hear first-hand from over 50s that several factors cause anxiety when it comes to finding new employment. Many of their fears stem from the notion of [not] being able to keep up, whether that’s with younger generations coming through who are more fluent in the latest technologies, or with demanding work schedules, workplace cultures, and so on.
“We also see a lot of over 50s concerned with [not] knowing where they’ll fit in within an organisation. The expectation of careers is that you work your way up the ladder, but for someone over 50 who has been economically inactive for a period and is now considering a return to work, the whole concept of starting again can be really daunting. So, there’s the fear of not knowing where they’ll fit into that structure within an organisation.
“It appears there is a wide-ranging lack of confidence amongst many in this age group, but it is often hidden from plain sight. Just like younger employees entering the labour market for the first time, those aged over 50 are also looking for reassurance that they can play an important role, in whichever position they step into.”
It’s clear that over 50s can add great value to organisations, with a wealth of knowledge and experience gleaned over their careers and lives. Right Management advise those in this age demographic to request flexible working before taking on a role, and to challenge their own fears of not being able to keep up.
“Over 50s, or later careers as we refer to them, are at risk of underselling themselves. They need to know how much good organisations will value wisdom, expertise and experience, particularly to provide a suitable balance alongside those Gen Z workers who are just starting their careers.
“Employers meanwhile, should be ensuring they are creating an environment that meets the needs of a multigenerational workforce ,aligned with those at different stages of their career. Those who are unable to do so will miss out on gaining valuable skills, perspectives and insights for their business.”
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What Next? The Fear of the Career after 50

Employee satisfaction is incredibly important, a fact known by all business leaders. In the current job market, there’s a surplus of employment options and retaining top talent is an increasing challenge.
With this in mind, the team behind tamper evident carriers and security seals manufacturer versapak have compiled their list of top tips to attract staff longevity.
Lead by example
Is your business creating a culture in which working extra hours and sacrificing self-care are viewed as ‘just part of the job’ and necessary evils? If so, it can cause serious reputational damage and make it impossible to attract staff longevity.
As a leader, setting the tone and acting as a role model can massively help workplace culture. Leadership is a crucial trait in business – including self-reflection and the ability to not only recognise, but also proactively act upon your shortcomings. A strong leader can inspire their entire team and create a sense of unity, thus motivating everyone to steer the business in the right direction. If you show your passion on a daily basis, people will want to follow you.
Keep up-to-date with the industry
In 2023, the job market is more employee-driven than possibly ever before. Staff turnover is a real issue as C-suite heavyweights wrestle with new, digitised practices brought on by the switch to working from home. In certain industries, workplace hybridisation might become the new norm, but not all members of senior management are ready or willing to get onboard.
Employers can offer valuable perks to employees, such as hybrid working, to prevent them from simply bouncing from job to job in pursuit of a more lucrative package. As a business leader, it’s best to stay abreast of industry developments and honestly but fairly assess how your company compares to others in your space. It’s crucial that business owners are agile in the face of an ever-changing landscape. Quiet quitting isn’t a silent taboo anymore – employees are making their feelings loud and clear.
Handle compensation with car
The current rhetoric surrounding pay rises is another difficulty that businesses are facing at the moment. Amid the cost-of-living crisis and regular strike action across multiple industries, offering staff pay rises appears a simple solution on the surface – however, it might just exacerbate a spiralling problem. Offering pay rises will increase running costs for businesses, which will force prices to increase further and staff will still face the same issue; needing higher pay to afford basic goods and services.
For many managers, your employee asking for a raise can present a tricky and delicate situation. Compensation is far from a straightforward subject and, depending on the structure of your company, the final decision might not be yours, even though you’ll need to deliver the possible bad news which has a profound impact on your employee’s livelihood.
If faced with this situation, make sure to treat your employee with respect and decency – regardless of if it’s your team’s star worker or an average performing member of staff – and allow them to clearly and thoroughly state their case without giving an immediate answer.
Caroline Atkinson, Group Managing Director of www.versapak.co.uk, commented: “For business leaders, the current job market can present choppy waters to navigate. By choosing to lead by example, keeping up-to-date with industry leaders in your space and handling compensation with care, it’s still possible to attract staff longevity despite the ever-changing landscape.
“At Versapak, we truly believe that our company is only as good as our employees. Employees are the heartbeat of any company, so creating an environment which attracts staff who are happy, loyal and ready to fully embody and embrace the company’s mission is essential. By putting employee welfare first, companies are actually putting themselves first too.”
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How businesses can attract staff longevity amid an ever-changing landscape

UK mortgage holders will see their monthly payments jump to up to 30% of their income from about 20% over the past few decades, the boss of Barclays has said.
CS Venkatakrishnan, known as Venkat, said the sharp rise in interest rates will lead to a “huge income shock” by the end of next year.
He said during an interview at the Wall Street Journal CEO Council Summit: “By our assumptions, for the median family income with the median mortgage, what they have paid as their mortgage or rental payments in the last two decades – the nineties to 2020 – was about 20 per cent of their income.
“That is going to be about 28 per cent to 30 per cent of their income. So there is a huge income shock.
“Obviously it affects consumption, and that is before you even bring in the other affects of inflation being food and energy, and basic goods and services.
“I think therefore what you will see ultimately is a slowdown in consumption – we are seeing it already.”
Barclays’ group chief executive, Venkat, has said the recent banking turmoil could result in less lending and more mergers between banks.
He said: “I think the phase of initial discovery is over, and I think there is going to be a longer term discovery and adjustment.
“The three banks that failed – Signature Bank, Silicon Valley Bank, and First Republic – were the most obvious ones when people started look at asset pricing plans.”
But he said many other banks with smaller asset problems could start looking to sell portfolios and “heal themselves”.
“What that will probably mean is less lending”, he said.
Asked whether the recent US bank failure could be an opportunity for big banks to get bigger, Venkat said: “I think you will see more banks getting interested in some sort of merger.”
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UK mortgage holders will see payments rise to 30 per cent of their income, Barclays boss warns

Honda is to return to Formula 1 in a formal capacity in 2026 as engine partner for the Aston Martin team.
The company officially pulled out of F1 at the end of 2021 but its engines are still used by the two Red Bull teams and are called Hondas again in 2023.
Honda said on Wednesday that F1’s pursuit of carbon-neutrality by 2030 was the “key factor” behind its decision to re-enter officially.
New rules for 2026 will increase the electrical performance of F1 engines.
The sport’s governing body the FIA is mandating the use of fully sustainable synthetic fuels at the same time.
Honda Racing Corporation president Koji Watanabe said: “In pursuit of its goal in achieving carbon neutrality by 2030, starting in the 2026 season the FIA will mandate the use of 100% carbon-neutral fuel and the deployment of electrical power will be increased significantly by three times from the current regulations.
“With this massive increase in electrical power, the key to winning in F1 will be a compact, lightweight and high-power motor with a high-performance battery that is capable of swiftly handling high power output as well as the energy-management technology.
“We believe this know-how gained from this new challenge has the potential to be applied directly to a future mass-production electric vehicle.”
What is behind Honda’s change of approach?
F1 has used hybrid engines since 2014 but the new rules will make significant changes in their layout.
The biggest is the removal of the MGU-H, the part of the hybrid system that recovers energy from the turbo, and a significant increase in the proportion of hybrid power in the engine’s power output.
Watanabe said: “Currently, the electrical power accounts for 20% or less compared to the internal combustion engine.
“But the new regulations require about 50% or more of electrification, which moves even further toward electrification and I believe the technology for electrification will be useful for us in producing vehicles in the future.”
The use of carbon-neutral fuels and their integration into the engine, he said, also “matches with Honda’s direction”.
Watanabe said the extension of F1’s cost cap to cover engines was also a factor in the decision as it made “long-term and continuous participation in F1 easier”.
Read more:
Honda to return to Formula 1 as Aston Martin engine partner in 2026

The International Monetary Fund has upgraded its outlook for the UK, forecasting growth this year instead of recession and no longer consigning the economy to the worst performing in the G7.
The IMF thinks that the British economy will expand by 0.4 per cent this year, a revision from the 0.3 per cent contraction that it forecast in April.
It is the second consecutive upward revision from the Washington-based fund in as many months, and means that the UK will not be the slowest major economy in the world in 2023. Germany, Europe’s largest economy, is on track to stagnate this year, making it the worst performing in the G7.
The IMF has revised up its forecasts on the back of government support measures and falling global energy prices, which have helped boost consumer spending, which has been stronger than expected this year. Reduced uncertainty around the post-Brexit trading environment in Northern Ireland has also helped lift business confidence, the IMF said.
Growth is expected to accelerate by 1 per cent next year, as inflation slows, and then average in the 2 per cent range in 2025 and 2026, the IMF said. Officials, however, warned that inflation would only fall back to 2 per cent in three years’ time and said there was a danger that prices could remain higher for longer.
The figures come after the fund’s officials concluded a two-week mission in the UK to assess the state of the economy before its regular annual assessment report.
“Buoyed by resilient demand in the context of declining energy prices, the UK economy is expected to avoid a recession and maintain positive growth in 2023,” the fund said.
Jeremy Hunt, the chancellor, said the IMF forecast was a “big upgrade” for the UK’s growth prospects, and “credits our action to restore stability and tame inflation”.
He added: “It praises our childcare reforms, the Windsor framework and business investment incentives. If we stick to the plan, the IMF confirm our long-term growth prospects are stronger than in Germany, France and Italy — but the job is not done yet.”
The upgrade is in line with other large institutions who have also scrapped their projections for a recession in 2023, including the Bank of England.
The IMF has come under fire from the government and Tory MPs for consistently under-estimating the resilience of the UK economy after Brexit. The fund had initially pencilled in a 0.6 per cent contraction for this year in January, with its forecasts being slightly less pessimistic than the Bank but under-shooting projections from the Office for Budget Responsibility.
IMF officials have conducted an internal review of their UK forecasts and found that they have not been considerably worse than other institutions given the high degree of uncertainty around all growth projections following the war in Ukraine.
The fund praised the government and the Bank for acting “decisively to fight inflation”, pointing out that the central bank was among the first to begin raising rates in late 2021.
However, inflation has proven more persistent than hoped this year, as food prices have hit record highs. Fresh inflation figures out tomorrow are expected to show the first big drop in consumer prices to about 8.4 per cent from the 10.1 per cent recorded in March.
The IMF said it now expects inflation to fall to the Bank’s 2 per cent target by the middle of 2025, six months later than it forecast in April.
The fund said there was a risk that the price of goods and services and wage growth would keep inflation uncomfortably high this year. “Should such upside risks to inflation materialise, headwinds to growth would likely be intensified by tighter demand-management policies needed to combat inflation,” the IMF said.
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Britain no longer heading for recession this year, says IMF

Retailers are “losing” up to £31.5 billion in online sales each year because of delivery-related “frustrations” when customers come to pay, research shows.
A report to be published this week has found that 24.8 per cent of attempted online purchases are abandoned by shoppers because of poor delivery choices, high delivery fees and slow delivery speeds.
The report, Battling Basket Abandonment, by GFS, a delivery company, and Retail Economics, a consultancy, says that 83 per cent of retailers believe they offer delivery options that meet customers’ needs, but only 48 per cent of consumers agreed.
Three in five retailers in the study offered express or next-day delivery and less than half provided nominated delivery or parcel pick-up points. Parcels left in insecure places, poor packaging and difficulties returning items were the top three “pain” points.
Richard Lim, chief executive at Retail Economics, said consumer expectations were “higher than ever before” and they showed “little tolerance” for brands unable to meet these levels.
“It’s clear that with such a high proportion of online baskets being left abandoned at the point of checkout, retailers need to prioritise offering a range of delivery options to suit their customers’ needs if they are to win.”
Bobbie Ttooulis, executive board member at GFS, said: “The research validates, and more importantly puts a value on, what we’ve always known to be true: that lack of delivery options results in lost sales at the checkout. In our experience, retailers are well aware of this, but struggle to overcome the internal costs and complexities.”
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Delivery frustrations cost online retailers billions in lost sales

Start-up founders who create a psychologically safe space for their employees are more likely to see their start-up scale quicker, according to new research.
The researchers found that employees are more likely to give honest feedback on the company in order to help it grow if they feel they work in a company that has a safe environment.
This research was conducted by Veroniek Collewaert, Professor of Entrepreneurship at Vlerick Business School and Katholieke Universiteit Leuven, alongside colleagues from Ghent University, , and Technical University Munich. The researchers wanted to understand how the role of founders and their early-stage employees evolves over time as the start-up evolves.
To do so, they studied the roles of both founders and employees and how these developed over time, regularly observing and interviewing all members of an AI start-up that was in the early stages of scaling up.
The researchers also found that both the formal and informal roles of team members changed over time as the company prepared for scaling. These changes could be defined as two separate phases; the ‘founder-driven phase’ where changes to the founder’s roles were entirely driven by themselves and what they chose to delegate; and the ‘interaction-driven phase,’ where the founder’s roles changed based on interactions between themselves and their employees.
The researchers state that when employees had a say in their future roles, and actually helped to craft their own expectations, the start-up was much more likely to develop efficiently. In fact, employees who did not have a say in their future roles were much more likely to leave the company due to either resigning or being dismissed.
“Founders aiming to scale their ventures face many challenges, but one particularly difficult challenge is preparing and reconfiguring the internal organisation of their ventures ,” says Professor Veroniek Collewaert. “A founder’s role often changes from focusing on a number of areas, to becoming highly focused on one. In doing so, it is important for founders to find ways to get the most out of their own role, but also the roles of their employees, in order to grow as quickly as possible.”
It’s clear from the findings that in order to make employees craft their jobs effectively, they have to feel listened to, and able to give honest feedback to the founders. That’s why, the researchers state, creating a psychologically safe environment for start-up employees is incredibly valuable for future growth. “Furthermore, in order for founders to support these employees in their job crafting efforts, they need to sense a fit between their values and the employees’, and particularly their values of striving for excellence”, Professor Mirjam Knockaert indicates.
“Employees typically craft their own role so that it better fits their preferences and strengths,” says PhD researcher Evy Van Lancker. “This role-crafting doesn’t only influence the employees’ role, but also impacts the organization’s culture and the founders’ roles.”
The researchers state that these findings showcase the importance of employee role-crafting, which can not only lead to changes in the founder’s own roles but also support the realisation of the founders’ ambitions for their venture, such as scaling.
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Founders who create safe environment for employees more likely to see start-up scale

Jemma Simpson, 32 from Belfast, has won a prestigious national Prince’s Trust and TK Maxx and Homesense Award, after previously winning the Ulster Bank Enterprise Award in the country final.
Winner of the national NatWest Enterprise Award attended a reception yesterday at Buckingham Palace to meet His Majesty The King, Founder and President of The Prince’s Trust, who congratulated the award winners on their achievements.
Jemma was honoured at this week’s star-studded award ceremony, hosted by Ant and Dec, and attended by many celebrity supporters and Ambassadors of the youth charity. Jemma was presented her award by former professional boxer, Nicola Adams, and England Manager and former international footballer, Gareth Southgate.
The Prince’s Trust and TK Maxx & Homesense Awards recognise young people who have succeeded against the odds, improved their chances in life and had a positive impact on their local community. The NatWest Enterprise Award honours young people who have taken part in The Trust’s Enterprise course and then developed a successful business.
Despite a rocky start in life, Jemma, 32 from Belfast, realised her own potential after being made redundant during the pandemic and is now running a successful, inclusive recruitment company, Diverse Talent.
“I faced many challenges growing up. We moved house a lot and, before I was 16 years old, I’d lived in multiple places including a women’s aid refuge. As the eldest child, I felt a lot of responsibility to look after my Mum and siblings. School wasn’t a priority of mine and when I left at 16 I didn’t have much to show for it. From a very young age, my ambition was to create a better life for myself and my family.
“I got my first job at 17 years old but it required a huge change to my lifestyle. I ended up leaving the family home and living on my own. Looking back, I probably wasn’t mentally ready for it, but I had no other option. However, I pushed myself to shake off my past and focus on my career and what makes me happy. It wasn’t until my mid-twenties that I began to accept my sexuality. It was a process that took time, but I’m so proud of where I am now in my life.
“I put a lot of time and work into focusing on myself and healing from past experiences, and working in (what I thought was) my dream job. But then Covid hit, and everything changed when I was made redundant. This was a difficult time and I started to plan what to do next.
“I wanted to complete a CIPD course to become a certified HR professional and The Prince’s Trust offered me financial support with the course fee. They also provided insight into the other ways they could help, including the Enterprise programme.
“Having worked in the Recruitment industry for over 10 years, I’ve dreamt of starting a recruitment company specialising in hiring candidates into STEM jobs and matching them with companies that prioritised equity, diversity and inclusion. However, I had never acted on the idea because I was nervous when it came to understanding both the legality and HMRC-related responsibilities.
“The Prince’s Trust helped me to understand business operations, which included writing a business plan, creating a cashflow and product marketing.”
Jemma has now moved the business into premises in Belfast City Centre and employs a team to cope with demand. She is passionate about helping people find roles with ethical employers that are good places to work. Diverse Talent also sponsors a local football team called Belfast Blaze FC – Northern Ireland’s only LGBTQIA+ football team. Her company regularly hosts networking events, raises awareness of equality, diversity and inclusion in the workplace and is a respected recruitment group within the industry.
“I have so much more self-confidence than I used to and want to make a positive change in the recruitment industry. I’m excited about what the future holds and we’re now in motion to expand Diverse Talent across the UK. I am more satisfied with life than I dreamed I could be.”
On winning the NatWest Enterprise Award, Jemma said: “I feel so fortunate to have come across The Prince’s Trust. They’ve helped me create my dream business and, in doing so, have allowed me to give back to the community too. It’s been an absolute surreal experience winning the NatWest Enterprise Award.”
Samuel Okafor Affluent Head of Client Growth, NatWest said: “As the proud sponsor of the Enterprise Award, we are delighted to name Jemma as this year’s winner. She is a very deserving winner and a true inspiration to so many young and aspiring entrepreneurs across the UK.”
Commenting on Jemma’s win, Gareth Southgate said: “Jemma is an inspiration to all young people out there. With her entrepreneurial spirit, she is a stellar example of how, with the right support, young people can achieve their dreams. I’m very excited to see what the future holds for Diverse Talent!”
Nicola Adams, presented Jemma to His Majesty yesterday. She said: “Huge congratulations to Jemma who has dedicated her career to promoting equality, diversity and inclusion. She is not only making her friends and family proud with her achievements but is also making a positive change in the recruitment industry.”
Youth charity The Prince’s Trust gives young people the skills and confidence to get their lives on track. Three in four young people helped by The Prince’s Trust around the world move into work, training or education.
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Belfast young person Jemma Simpson meets His Majesty The King after winning national Princes Trust award