What is this legislation?
With effect from the 30th September 2017, the ‘Criminal Finance Act 2017’ came into force with potential profound impacts upon UK recruitment businesses. The legislation makes recruitment agencies criminally liable in the event of failure to prevent tax evasion either directly by their own staff or indirectly via an external agent.
Prosecution could result in both a conviction and unlimited penalties!
Why is this particularly relevant for recruiters?
This is a critical area of recruitment compliance due to the fact that Umbrella Companies qualify as external agents to recruitment agencies.
To make matters worse a significant number of rogue umbrella company operators in the market are actively facilitating tax evasion. Common methods of doing this are via bonus and commission payment schemes to reduce tax payments and increase take home pay for contractors.
Therefore if any of your contractors are taking home in excess of 70% pay, alarm bells should be ringing!
Are you sure that all Umbrella Companies that manage payroll for your contractors are deducting the correct amounts of income tax and national insurance?
If not, you need to take immediate action to conduct appropriate compliance checks and only use Umbrella Companies that process correct tax deductions.
How can FPS Group help?
Established in 1994, FPS Group is one of the industries most trusted and compliant umbrella solution providers. Our umbrella solutions are fully HMRC compliant with full income tax and national insurance deductions made giving you unparalleled peace of mind. So save yourself the worry and choose FPS Group as your proven umbrella company partner.
Call us today on 0800 634 4848 and get compliant today!