Louise Rayner – Independent Compliance
Consultant
Louiserayner@outlook.com
07899937083
February 2014

Ben is a contractor
 Previously a permanent employee
 He lost his job where he was a part owner, he received a compromise settlement of £70k. £15k of which related to sale of shares, £23k is not payable until next tax year when he is out of restrictive covenants.
 He started a 3 month contract. He has since had 3 other contracts and now see’s him self as a contractor.
 He is working part of the year in South Africa
 He typically earns circa £40k p.a
 He has 2 flats and gets rental income from them
 He sold his holiday home this year to free up funds for his daughters university fees
 His wife doesn’t work and has no income
 This year he sold some other shares
 He is considering making provision for his pension
 His mother is ageing and gave him a gift of £80k this year
 He has children and is interested in planning re inheritance
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“A buyer & a seller of compliance services in the recruitment market”
 18 years’ experience in recruitment and outsourcing
 Adecco, Head of UK Finance – implemented the biggest temp payroll in the UK (40,000 per week) & the Travel &
Subsistence Dispensation scheme. SOX
 Randstad Managed Services – Commercial Director
 RSM Tenon, Head of Operations – outsourcing for 400
SME client
 MD/FD of JSA (umbrella/soletrader/Ltd co)
 Qualified FCCA
 MBA, thesis “commercial pricing in RPO/MSP environment”
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Compliance issues that I get asked most about;
 A/PSL Intermediaries – ITEPA
44/Finance Act/IR35/offshore/employment status
 AWR
 WTR
 ID Checking
 Employment Tribunals
 Bribery
 Managed Service Legislation
 Insurance
 Pensions auto enrolment
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Most common operational issues
 Inadequate/confused checks at ASL selection
 Poor contract/document review
 Use of “any intermediary” even when an ASL exists
 Consultant “brown envelopes”
 Lack of awareness re off shore intermediaries
 No ongoing audits
 Intermediaries who cannot explain a tax calculation or don’t ask for/ignore relevant information
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Mystery shopping results - 15 intermediaries
 100% sounded confident
 100% claimed compliance & made reference to HMRC
 Only 4 could adequately explain the tax calculation, when quizzed
 5 made totally false claims
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The most common logo’s in the umbrella & Ltd Co services market
Give you a feeling of compliance?
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The next common logo’s in the umbrella & Ltd Co market
Give you a feeling of compliance?
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Ben is a contractor
IHT
 Previously a permanent employee
 He lost his job where he was a part owner, he received a compromise settlement of £70k. £15k of which related to sale of shares, £23k is not payable until next tax year when he is out of restrictive covenants.
 He started a 3 month contract. He has since had 3 other contracts and now see’s him self as a contractor.
 He is working part of the year in South Africa
CGT
 He typically earns circa £40k p.a
 He has 2 flats and gets rental income from them
 He sold his holiday home this year to free up funds for his daughters university fees
 His wife doesn’t work and has no income
 This year he sold some other shares Inc Tax
 He is considering making provision for his pension
 His mother is ageing and gave him a gift of £80k this year
 He has children and is interested in planning re inheritance
IR35
Corptn tax
Empl Status
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These SHOULD be the indicators of compliance!
Be aware the word “accountant” is not a legal definition and can be used in vain.
7 years training
“Practicing Certificate” ie licensed to charge for advice
CPD to keep them up to date
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Practical tips
 Location – check not registered or associated offshore
 Financial stability – bank statements/cashflow
 Offering choice of service
 Relationship with advisers spend
 Technology – check integrated, disaster recovery
 Regular mystery shopping – contractor opinion
 Internal audits – check your consultants operate the PSL
 Directors backgrounds - phoenix companies
 Check that they are REAL ACCOUNTANTS with something to lose. Check for logo, Get membership numbers
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 Louiserayner@outlook.com
 07899937083
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