A Full Indemnity For Our
Agency Contractor Legislation really is our area of expertise. We like to see CCA as an extension of your compliance and legislation team. Why? Because we know it better than you, and so we should. We offer you a full indemnity against a tax or NI bill (providing you’ve done everything you should have).
Compliance is still a misunderstood area for Recruiters. You are not required, under the legislation, to audit your providers. You are, however, expected to satisfy yourself that your Umbrella Providers are doing what they say they are doing. If you ask them if they are registered with HMRC as an employer, and ask if they pay PAYE on the contractors income then you will have a very strong argument for insisting that the liability for unpaid tax and NI is now the problem of the entity paying the contractor. But you need to get that questioning right and it’s a complex area:
- We will create your due diligence for you if you wish.
- We will put together a robust compliance questionnaire to ensure you have asked all the questions HMRC expect you to have asked any Umbrella Company providing payroll services to you.
- Feel free to use this with any other payroll provider to ensure they have satisfied your legislative requirements.
The Intermediaries Legislation or
Essentially IR35 effects all contractors who do not meet HMRC’s definition of self-employment. Up until now the contractor has always been able to decide the status of the roles they undertake. That will change from April 2021 and will then be determined by the end-user client. If someone in the supply chain gets it wrong, the liability rests with them and this has, regrettably, forced many end-user clients to blanket assess roles inside of IR35 without really doing the proper checks. If the end-user gets it right and the Recruitment Company doesn’t, liability will rest with the Recruiters.
- All our contractors are employed on an over-arching contract of employment
- All our contractors are subject to PAYE on their entire income
- All our contractors are reported on to HMRC through RTI
- We are registered as an employer with HMRC
- RTI ensures we are complying, quarterly reporting ensures you are
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