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.