Umbrella Companies PSL Review
Allumbrellacompaniesareequal are encouraging recruitment agencies to compliance check the umbrella companies on their PSL Lists (Preferred Supplier Lists).
Tax Avoidance Schemes identified have involved companies that although on the face of it appeared to be UK based were in fact Offshore Umbrella Companies. These types of schemes leave recruitment agencies at severe risk of transfer of debt penalties in respect of any tax found to have been underpaid. In April 2014 the rules changed regarding Offshore Employment Intermediaries making Recruitment Agencies responsible.
Other issues identified involved use of employment loans in place of taxable wages, non-adherence to The Agency Workers Regulations (AWR), businesses registered overseas in the Isle of Man and even Panama and employment contracts written in a foreign language.
Benefits of a PSL to Recruitment Agencies include:
- Ensuring all the Umbrella Companies dealt with are Compliant;
- Simplified pay runs as you only having to deal with up to 5 main umbrella contacts;
- By showing you have acted appropriately this can be used in defence of any transfer of debt issue;
- Control over vouchers or rebates being paid to your recruitment consultants; and
- By dealing with the best umbrella companies you can ensure your contractor will be paid on time, every time and that they will remain happy in their assignment.
Umbrella are members of All Umbrella Companies are Equal and would be happy to be included in the PSL process being performed by any UK Recruitment Agency. Umbrella offer a full suite of services and provide an Umbrella Company and Accountancy Services to contractors operating through their own limited company.
Umbrella are members of APSCo and Professional Passport and are subject to an annual external compliance audit.
Please call Umbrella Business Development on 0800 121 6513.