Your PSL

It has never been so important for every recruitment agency to have an up to date and compliant Preferred Supplier List (PSL). But why?

The answer is easy – HMRC is continuing to step up its efforts in reclaiming underpaid tax by workers who have engaged with a tax avoidance scheme (often referred to as disguised remuneration scheme, or loan scheme). They’re now prepared to seek unpaid tax further down the supply chain if they are not able to get it from the individuals who engaged with the scheme in the first place. This means your agency could face huge tax bills in the future – if you refer candidates to a non-compliant accountant or payroll provider. And, it’s worth remembering, HMRC don’t care if you referred somebody to a tax avoidance scheme by mistake – you could still be held accountable.

Recent legislation such as the Criminal Finances Act (2017) should have come as a serious wake up call to agencies throughout the UK. We appreciate that a huge majority are compliant and have a strict PSL in place, but unfortunately, a small number of agencies have been known to be irresponsible with their referrals; giving the industry a bad name.

To summarise the legislation – your agency can be faced with serious punishments from HMRC if any of your consultants are found to be referring to a non-compliant and unethical accountant or payroll provider. This still applies if the consultant does it behind the back of management. Therefore, you must be able to document every referral that is made by every member of your team.

FCSA accreditation means a great deal. The FCSA is the UK’s leading professional body. They are dedicated to ensuring the supply chain of temporary workers is compliant and ethical. Churchill Knight is proud to be an accredited member.

To achieve the FCSA’s prestigious accreditation, accountants and payroll providers must undergo a thorough assessment process and audit from independent professionals. Every internal process is monitored and evaluated – to ensure everything is done in full compliance with HMRC rules and regulations. If a company isn’t compliant – they cannot obtain FCSA membership.

By choosing an FCSA accredited business to add to your PSL – much of the time consuming and stressful due-diligence has been done for you. You don’t need to run comprehensive examinations of each business– because the FCSA has done it for you.

Find out more about Churchill Knight and why you should add us to your PSL.

Here are some tips to help you decide which contractor accountants and payroll providers you should add to your PSL.

FCSA accreditation

Only choose FCSA accredited providers – as you can be sure they’re compliant with HMRC and will pose no risk of non-compliance to your agency (Criminal Finances Act, etc.).

Reputation

Always check a company’s reputation – have they been around for a long time, and are they well-respected? Churchill Knight has been around since 1998 and is one of the longest-serving contractor accountants in the UK. We’ve built a reputation we’re proud of.

Incentives

Do they offer incentives? If they do, be extra careful. Remember, tax must be paid on incentives, and they must be entirely documented.

Registered in the UK

Make sure every provider you refer to is registered in the UK. This will help ensure you don’t use tax avoidances schemes by mistake.

Expenses

After the introduction of Supervision, Direction and Control, far fewer contractors can legitimately claim expenses. If you notice a payroll provider actively promoting that they pay expenses without asking questions – alarm bells should be ringing, and you should avoid them at all cost. Every compliant payroll provider should be extremely strict with expenses.

Knowledgeable and up to speed on the latest legislation

The staffing industry is not straightforward and there are a lot of rules and regulations that you must be aware of. Only partner with businesses that are well educated and up to speed on the latest news and laws affecting your business, and your candidates. Did you know that Churchill Knight has a dedicated Recruiters Zone? This area on our website is exclusively for recruiters and contains plenty of information on legislation, tips to remain compliant, advice for consultants and news on our latest competitions. We even have a dedicated Recruiters Blog! By partnering with us, you’ll be forming a relationship with knowledgeable experts who are here to help your consultants and candidates.

Our Recruiters Zone includes a series of guides, both online and available to download as a PDF. These guides cover legislation including IR35 (off-payroll), Agency Worker Regulations (AWR), Employment Intermediaries, the Apprenticeship Levy, Travel and Subsistence, Managed Service Company (MSC) and Transfer of Debt, and more!

Are they partnered with useful and trustworthy businesses?

This is important. For example, if your candidates are looking for an IR35 review, or they need additional insurance, can the businesses on your PSL help them? Churchill Knight is partnered with Kingsbridge – specialist providers of contractor insurance packages and IR35 reviews.

Do they offer comprehensive services for all of your candidates?

It makes sense to partner with a business that can take care of all of your candidates’ requirements. Churchill Knight is the perfect option, because we offer:

• Specialist contractor accountancy
• PAYE umbrella payroll
• CIS accountancy
• Sole trader accountancy
• Dedicated Personal Tax Department

Whatever your candidates need, our friendly Sales Team are ready to run through their circumstances on the phone and provide them with expert and impartial advice.

Are they experienced?

This is important because you want to know that they know what they’re doing. Churchill Knight has over 20 years’ experience and has helped over 20,000 contractors with their accountancy and umbrella payroll. We are also partnered with hundreds of agencies, and we look forward to partnering with many more in the near future.