For recruitment agencies, the relationship between consultants and their contractors is built on trust. Candidates rely on recruiters to provide the best possible advice in regards to their finances and salary. This is why it’s vital that agencies use a clear, concise and compliant umbrella company for support. We explore how agencies can benefit from a compliant payroll provider below.
Taking on the payroll burden
The most obvious advantage for an agency to use an umbrella company is that it reduces the administrative burden for them. The agency no longer has to worry about how the contractor is going to get paid. Instead, recruiters can concentrate their energy on searching for skilled talent and supporting them through the hiring process, without having to juggle the work surrounding PAYE, NICs and other common paperwork and queries.
The consequence of non-compliance
It’s vital that recruitment agencies do not promote non-compliant umbrella companies to their candidates. Using or referring to an umbrella company that promotes tax avoidance schemes would result in penalties and repayment of unpaid tax for the contractor from HMRC. However, with the implementation of the Criminal Finances Act 2017, HMRC is focusing on holding individuals and corporations accountable for facilitating tax evasion. What this means for recruitment agencies is that if individual consultants recommend or refer their clients to non-compliant umbrella providers, they will also be liable for serious penalties or even prosecution. It’s strongly recommended that agencies implement a preferred suppliers list of umbrella companies that are accredited by professional trading bodies in the industry, such as Professional Passport, PRISM, APSCo or FCSA, to provide reassurance that the relevant due diligence has been carried out.
A complaint umbrella can offer full support
Our sister company, Cloud9 Umbrella has now been acquired by industry experts JSA Group. Alongside, the expected administrative support an umbrella company can deliver, JSA’s umbrella has an open-policy for agencies to contact them on any concerns they may have on taxation, employment rights or legislation changes. They can provide assistance by taking the burden from agencies and having our specialists offer bespoke advice to contractors’ on their working situation. The team also offer full employment support, assisting with rates, understanding employment costs and any other queries. This leaves recruiters able to successfully focus on other areas of their business.
For more information on how JSA’s umbrella can support you, contact Natasha Webb on 02070780211 or email [email protected]