Recruitment agencies are now legally required to assist HM Revenue & Customs (HMRC) in cracking down on contractors who are underpaying tax and NI with the use of an offshore employment intermediary.
Introduction
Key points
- An offshore employment intermediary is a company in the labour force supply chain operating outside of the European Union.
- The Offshore Intermediaries Legislation was put in place in April 2014 to target tax and NIC avoiding contractors working with or engaging with offshore intermediaries.
- Recruitment agencies in the UK are now responsible for the PAYE and NIC of the contractor when the agency has any correspondence with the contractor’s end client.
- If the contractor is working with more than one UK agency, the agency working with the end client is responsible.
- Recruitment agencies are required to provide HMRC with a quarterly list of the contractors they are not deducting tax and NIC for. If the recruitment agency submits the document late, a fine of up to £1000 may be issued by HMRC.
A recruitment agency should not be making any financial gain by working with a contractor who is engaging with an offshore intermediary at any stage of the contractual supply chain.
Accredited by the FCSA
Churchill Knight and all of our associated companies* are proudly accredited by the Freelancer & Contractor Services Association (FCSA). The FCSA is a leading professional body that is committed to ensuring the supply chain of temporary workers is ethical and compliant with HMRC rules and regulations. To achieve this prestigious accreditation, all of our companies have undergone comprehensive audits by independent employment and legal professionals.
FCSA accreditation says it all – its members are compliant, ethical and have both your agencies and your candidates’ best interests at heart. Every business under the Churchill Knight Group falls into this category.
Download PDF Guide
Click on the button below to download a PDF version of our Offshore Intermediaries Guide – written exclusively for recruitment professionals.
Contact Us
To schedule a meeting at your office, or to find out more information about Churchill Knight and how we can help your recruitment agency remain compliant, please use the form below, or call 0808 2525533.
Why partner with Churchill Knight?
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.
