It has never been more important for your recruitment agency to consolidate your Preferred Supplier List (PSL) and to ensure every accountancy and payroll provider on it is fully compliant with HMRC legislation. With the introduction of the Criminal Finances Act 2017, your recruitment agency and your Directors could face severe punishments for facilitating tax avoidance – even if it was accidental!
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.
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.).
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.
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.
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. We are also affiliated with St. James’s Place Wealth Management – meaning all of our clients are able to take advantage of a completely free and no obligation financial health check when they sign up!
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.
We’re delighted to work with hundreds of recruitment agencies throughout the UK. By partnering with us, you’re teaming up with an accountancy and umbrella company with over 20 years’ experience, and a proven track record. We’ve built a reputation we’re proud of, and you can be assured that your recruitment agency, consultants and candidates will become our priority.
Here are a few reasons why you should contact our friendly team today to arrange a meeting in your office:
- We make it our priority to stay up to date with the latest news and legislation affecting the supply of temporary workers. Some of the legislation can be complex (especially IR35), and as a result, our Agency Development Team would be happy to deliver training at your office for Consultants who want to find out more.
- We are partnered with IR35 specialists that can help your end-client, and your agency with IR35 assessments, Status Determination Statements, and more.
- Churchill Knight has over 20 years’ experience, and we’re proud of the reputation we’ve built.
- All your candidates’ payroll requirements are covered – limited company, umbrella, and more. Switching between our services is easy.
- We understand no recruitment agency is the same. This is why we tailor our partnerships, ensuring your agency gets what it wants from our professional relationship.
- Your candidates are your priority and we respect this. You have our word – they’ll become our priority too. We always go the extra mile to ensure the service we deliver is beyond their expectations.
- We acknowledge it’s our responsibility to always be up to date with the latest legislation and to share it with our partners. We frequently run free seminars for our partners and are happy to host training sessions in their offices. If this is something that sounds appealing, please get in contact with us.