SETTING THE STANDARDS
Audit and Compliance
Conference
What’s in a name?
Crawford Temple
Professional Passport
SETTING THE STANDARDS
Audit and Compliance
Conference
Professional Passport
• Largest Independent Specialist Compliance Assessor
• 20 Approved Umbrella Companies
• 14 Approved Accountancy Service Providers
• We provide the ‘due diligence’ appeal for our
Recruitment Company members
• Our Recruitment Company members have £5,000,000
insurance against MSC Debt Transfer Liabilities
• Recruitment Company members can provide their
contractors free access to our website
Audit and Compliance
Conference
SETTING THE STANDARDS
Professional Passport Jobs
• Circa 20,000 active jobs
• Tens of thousands of applications to recruiters every
month
• Paid for job sites now put their jobs on the site to benefit
from our traffic volumes
• Linked with all the main multi-posters
• FREE for recruitment companies to post
SETTING THE STANDARDS
Audit and Compliance
Conference
What’s in a name?
SETTING THE STANDARDS
Audit and Compliance
Conference
Onshore and Offshore Employment
Intermediaries Summary
What is an umbrella
Planning and Actions
SETTING THE STANDARDS
Audit and Compliance
Conference
Offshore Employment Intermediaries
Consultation
Key Facts
• Final details are still to be confirmed
• Recruitment Companies will be held liable for tax
if they supply workers who use offshore
arrangements
• Significant reporting requirements placed on
recruitment companies
SETTING THE STANDARDS
Audit and Compliance
Conference
Onshore Employment Intermediaries
Consultation
Key Facts
• Final details are still to be confirmed
• Recruitment Companies will be held liable for tax
if they supply self-employed workers who are not
self-employed
• Significant reporting requirements placed on
recruitment companies
SETTING THE STANDARDS
Audit and Compliance
Conference
Offshore and Onshore Employment
Intermediaries Consultation
HMRC has confirmed that:
• The final legislation will make it clear that
Umbrella Companies and PSC’s are outside the
scope of the legislation
• There will be an appeals process where ‘due
diligence’ can be demonstrated
SETTING THE STANDARDS
Audit and Compliance
Conference
Offshore and Onshore Employment
Intermediaries Consultation
Conclusions
• Recruitment Companies need to know how their
workers are operating
• Cannot rely on light-weight questionnaires
• Ignore company assurances and examine the facts
• Evidence your ‘due diligence’ process
• Build systems to meet reporting requirements
SETTING THE STANDARDS
Audit and Compliance
Conference
What’s in a name?
• Many generic labels are given to intermediaries
• Umbrella
• Pay day by pay day model
• Personal Tax Relief model
• Personal Service Umbrella
• One Man Umbrella
• Self-Employed Payment Intermediary
• Employment Intermediary
• What is important are the facts of the arrangement
HMRC will always consider the actual facts of the arrangements
NOT the model/scheme the company says it is operating
SETTING THE STANDARDS
Audit and Compliance
Conference
Buyer Beware!
HMRC does NOT kite-mark schemes and does NOT provide
generic advice that a ‘scheme’ or ‘model’ is compliant
• Common claims of compliance
• We have leading counsel’s opinion
• HMRC has agreed our model is compliant
• HMRC will not pursue you or your end client for arrears should they arise
• Bold statements by the promoters are no guarantee
You must know the facts and demonstrate the steps you took to
establish them
SETTING THE STANDARDS
Audit and Compliance
Conference
Umbrella Definition
An umbrella company is a company that employs
workers on an overarching employment contract to
be engaged at a series of temporary workplaces
through a range of temporary assignments.
All payments have full PAYE applied and are subject
to the National Minimum Wage.
SETTING THE STANDARDS
Audit and Compliance
Conference
Overarching Employment
SETTING THE STANDARDS
Audit and Compliance
Conference
Relationships
SETTING THE STANDARDS
Audit and Compliance
Conference
Offshore and Onshore Employment
Intermediaries Consultation
Actions
• Robust Provider Due Diligence
• Design internal process
or
• Outsource process
• Build systems to meet reporting requirements
SETTING THE STANDARDS
Audit and Compliance
Conference
Actions
Provider Due Diligence – Professional Passport
• Current Providers
• Review Approved Providers
• Create PSL
• Join Professional Passport to benefit from
£5,000,000 Debt Transfer Insurance
SETTING THE STANDARDS
Audit and Compliance
Conference
Actions
Watch out for final legislation for exact detail on:
• Appeals Requirements
• Reporting Requirements
• Liabilities
SETTING THE STANDARDS
Audit and Compliance
Conference
“If you think compliance is
expensive –
try non-compliance.”
Former U.S. Deputy Attorney General Paul McNulty
SETTING THE STANDARDS
Audit and Compliance
Conference
Crawford Temple
0118 988 8034
07881 511345
crawford.temple@professionalpassport.com
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