New laws including the Criminal Finances Act 2017 will change the way recruitment agencies refer their candidates to accountancy and payroll providers. This is because the repercussions for referring a candidate to a tax evasion scheme could result in custodial sentences and unlimited fines. Churchill Knight has created a Referral Checklist designed to help recruitment agencies stay compliant and avoid severe penalties.
With the introduction of the Criminal Finances Act 2017 and additional laws aimed to eliminate the facilitation of tax evasion, having a dependable Preferred Supplier List (PSL) is now of critical importance. If you do not have a PSL you can trust to refer your candidates to, your business, managers and directors are at risk of unlimited fines and custodial sentences.
New rules as part of the Criminal Finances Act 2017 will be coming into effect on the 30th September 2017 and are intended to make it easier for HMRC to convict organisations that are helping to facilitate tax evasion schemes. This is likely to have a heavy impact on recruitment agencies who commonly engage with self-employed freelancers and contractors and help them identify a payroll provider. Please keep reading to find out more about the new rules and the consequences they will have on the recruitment industry.
The General Data Protection Regulations (GDPR) will be coming into effect from the 25th of May 2018. The new regulations are similar to those under the Data Protection Act (DPA) and therefore, if you are presently compliant with your data handling, preparing for the GDPR should be straightforward. Our article will provide some useful information to help your recruitment agency understand the new regulations and prepare accordingly.
HMRC is incessantly working to identify and close down tax avoidance schemes. In 2004, a new piece of legislation was introduced called ‘The Disclosure of Tax Avoidance Schemes’ (DOTAS). The main focus of DOTAS is to crack down on tax avoidance schemes by targeting the promoters and users of them. Our latest article answers a series of questions about DOTAS and explains the responsibilities of your recruitment agency.
Supervision, Direction and Control (SDC) was introduced by HMRC and came into effect on the 6 April 2016. The legislation was created to reduce the number of umbrella contractors claiming tax relief on travel and subsistence expenses. Do you know if your candidates are subject to SDC and how they will be impacted?
The number of payroll providers for the self-employed in the United Kingdom is on the rise. However, how many of these companies can you trust to provide an efficient, reliable and compliant service for your recruitment consultants and your candidates? It has never been so important for recruitment agencies to have a Preferred Supplier List (PSL) consisting of a small selection of payroll providers with a proven track record in the industry.
Many contractors and freelancers in the United Kingdom use umbrella companies as their preferred choice of payroll provider. However, some of your candidates will be better suited to an umbrella company than others. Here we have a look at who should use an umbrella company for their payroll.
It is understandable that your candidates will want to maximise their take home pay. However, using an offshore intermediary could land them in serious trouble with HMRC and your recruitment agency could also be punished as a promoter of a tax avoidance scheme. Find out more about the risks of referring your candidates to offshore intermediaries.
A new tax avoidance scheme that disguises remuneration by paying contractors with a combination of a smaller salary and loyalty points has been identified by HMRC. Users and promoters of job board tax avoidance schemes are already being investigated and are being urged to contact HMRC immediately to get their tax affairs in order.
