To further safeguard the temporary staffing sector, the Freelancer and Contractor Services Association (FCSA) has amended its Codes of Compliance. After five months of engaging with stakeholders to ensure the updated Codes are up to scratch, the FCSA confirm “no one else in the sector can give contractors or the supply chain this level of assurance”. Keep reading and find out more about the FCSA’s updated Codes of Compliance.
The FCSA’s Codes of Compliance
To achieve FCSA membership, contractor accountants and umbrella companies must undergo a series of audits and assessments by independent assessors. Taking the recent amendments into consideration, there are now over 540 elements that FCSA members must adhere to if they obtain FCSA accreditation and retain it after the annual audit. Ultimately, the FCSA’s Codes of Compliance exists to ensure every member is compliant, ethical and has temporary workers best interests at heart.
As this article proves, the FCSA’s Codes of Compliance are always subject to review. Should a matter raise concerns within the industry, the FCSA will assess the situation and act accordingly. In this instance, further Codes were added to help them achieve their overall goal – protect temporary workers and ensure the supply chain is transparent.
The FCSA’s Codes of Compliance are deliberately available for all to see – further proof of their desire to be entirely transparent with the supply chain. Should an accredited body ever fall short of the standards expected of them, the FCSA will not hesitate to strip them of FCSA membership, and this has happened in the past.
What has the FCSA amended in the revised Codes of Compliance?
In a video on the official FCSA YouTube Channel (transcript below), Phil Pluck, CEO at the FCSA, summarises what has changed. In a nutshell, three main areas have been addressed:
- FCSA accredited members are required to provide even more accurate and transparent calculations to contractors, freelancers and temporary workers.
- Even greater transparency is required by umbrella company providers regarding holiday pay – including compulsory references in the contract and on umbrella company payslips.
- Every member is required to submit independently audited accounts.
“The most comprehensive and compliant set of evidence-based standards”
“Extending to over 540 areas of assessment, the FCSA Codes are regarded as the most rigorous assessment of compliance and ethical standards in the industry. Our latest comprehensive review of these Codes has made them tougher and even more transparent. This process has taken no less than five months to complete. It began with a full independent review by five of the UK’s leading legal and financial firms who are regulated and have vast experience in our sector. Ernst and Young, BDO, Saffrey Champness, Brabners, and JMW are the firms that have contributed to this review.
They provided the independent expert challenge that give the Codes the rigour they need. HMRC, BEIS, and leading industry trade bodies were also consulted during the process.
So, what’s changed? Our Codes now provide greater transparency on the financial illustrations that our member firms need to provide to contractors. Member firms are required to provide greater transparency regarding holiday pay in every umbrella employment contract and payslip. All member firms are now required to submit independently audited accounts.
What hasn’t changed however is the continued independence of the assessment process. Every step of the assessment process is conducted by independent and regulated accountants and solicitors. No member of FCSA staff, the Board, or membership are involved in this process – ensuring complete independence. What’s more, we publish our Codes so that any agency, end hirer, or contractor can see exactly what our members are assessed against.
The most comprehensive and compliant set of evidence-based standards now exist in our sector. No one else in the sector can give contractors or the supply chain this level of assurance.”
Churchill Knight welcomes the updated Codes of Compliance
Ciaran Woodcock, Head of Marketing and Field Sales at Churchill Knight, has welcomed the FCSA’s Codes of Compliance amendments. He said:
“The amount of work the FCSA has put into its Codes of Compliance is remarkable. However, in an ever-changing sector, it’s vital they continue to monitor and amend them accordingly. It’s great to see them take action when it’s needed.
Churchill Knight is committed to providing our accountancy clients and umbrella employees with a compliant service. Therefore, anything that the FCSA adds to its Codes of Compliance is welcomed.
Recently, it became apparent that accrued Holiday Pay raised concerns within the sector as an umbrella company was accused of unfairly retaining it. It’s very encouraging to see the FCSA update their Codes of Compliance – especially focusing on Holiday Pay and calculations are given to contractors.
Contractors should never have to worry about being misled by unethical financial service providers. The continued investment by the FCSA into its Codes of Compliance reiterates the importance of choosing an FCSA accredited member. Churchill Knight is proud to comply with the FCSA’s Codes of Compliance, and this will continue to remain our priority.”
Are you looking for an FCSA accredited contractor accountant or PAYE umbrella company?
Both Churchill Knight & Associates Ltd and Churchill Knight Umbrella are proudly accredited by the FCSA. With over 20 years of industry experience, we have always been dedicated to providing our accountancy clients and umbrella employees with a dependable and compliant service. There is no doubt that the FCSA is the UK’s leading professional body with the mission of ensuring the supply chain of temporary workers is ethical and in line with HMRC’s rules and regulations. There is no better way to showcase our commitment to compliance within our sector than by obtaining the coveted FCSA accreditation.
To find out more about our contractor accountancy or umbrella company payroll, please give our friendly team a call on 01707 871622, or complete the short form here. If you’re interested in obtaining a free, tailored take-home pay calculation, please click here.
Founded by an IT Contractor in 1998, Churchill Knight has become one of the most respected contractor accountants in the UK. We’ve helped over 20,000 contractors with their accountancy requirements. As well as our accountancy services, we also have an industry-leading PAYE umbrella company and dedicated in-house personal tax department. Whichever service you choose, you can move forward with complete peace of mind. We are proud of the reputation we’ve built over the years, and our FCSA accreditation proves how committed we are to compliance within our sector. Keep reading…