With so many umbrella companies in operation today, it is crucial that you are confident in your payroll provider being both compliant and trustworthy. Recent changes to tax and employment legislation mean that your agency could be liable for penalties, or even subject to debt transfer. By having a Preferred Suppliers List (PSL), or an Approved Suppliers List (ASL), you can be certain that your contractors are dealing with reputable businesses who understand the requirements of the recruitment sector. It streamlines the process for both workers and the agency by allowing you to manage your supply chain more effectively and offering your agency more time to develop sales and search for the most talented candidates.
Why is it important?
Flexible employment and the demand for temporary workers is increasing. Therefore, it is worthwhile spending time on collating a list of suppliers that you are confident working alongside. After all, you want your contractors to receive an honest, compliant and reliable service.
Financial stability and professional ethics are paramount to assuring the reliability and overall quality of your provider. Compliant businesses should be completely transparent, allowing you to request any information that you require. Don’t hesitate to get in contact with your approved suppliers when you have a query or require any specific documentation.
With the forthcoming changes in legislation, the use of intermediaries can be complex, allowing unscrupulous providers to thrive. This has resulted in a rising number of potentially non-compliant schemes, offering unrealistic take home retention. A poorly advised and incentive-driven contractor can easily be lured into a tax avoidance scheme. If it seems too good to be true, it probably is!
Establishing a partnership with an umbrella company will help guarantee the chosen supplier is a genuine employee. The umbrella company should understand legislative changes such as SDC, the restriction on Travel and Subsistence and the Intermediaries Report, whilst continuing to focus on compliance within the industry. Ensure you check your umbrella company’s credentials and professional accreditations, as these will show how often they are audited and inspected for due diligence. Industry recognised accreditations include the Association of Independent Professionals and the Self-Employed (IPSE), and the Association of Professional Staffing (APSCo).
Why choose us for your PSL?
With the changes in legislation from 5 April, it is advisable to work with providers who are able to offer tailored solutions for contractors and agencies. By having a supplier who offers both traditional Umbrella, payroll and employment bureau, as well as accountancy services for PSCs, you can be confident that your temporary workers are advised according to their personal circumstances. Both Cloud9 and K&B Accountancy Group provide a free initial consultation for professional and impartial advice to all new clients to ascertain the best solution.
Cloud9 Umbrella and K&B Accountancy Group have over 15 years’ experience working with contractors, freelancers and the temporary workforce. We fully understand that recruitment agency and candidate requirements and work closely with both to streamline the onboarding process, saving costs along the way.
Our affiliations with IPSE, APSCo, Professional Passport, PRISM and AUCAE highlight our commitment to compliance. We work closely with these professional bodies to inform our contractors and consultants of the latest legislation changes and industry news.
Allowing your contractors to choose from a selection of approved umbrella companies is recommended. This will strengthen your relationship with candidates by providing them with informative, concise and professional payroll solutions.
For more information and guidance on how to compile a PSL/ASL, or to become a partner with Cloud9 Umbrella, please call 020 7078 0212. Alternatively, if you would like to speak with an expert accountant at K&B Accountancy Group, please call 020 7078 0211, or you can contact us here.
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