No Offshore Structuring
Offshore structures designed to avoid paying the right level of tax are a danger to UK recruiters and contractors. FPS Group employment solutions are entirely onshore and we are happy to provide as much information as you require to validate this. Umbrella companies are incorporated in the UK, have UK banking arrangements and are registered as an employer with HMRC. Please refer to the below diagram for an illustrative breakdown of the structure of our umbrella solutions.
Financial safety & security
In most umbrella arrangements, the supplier invoices the agency for the service, taking the money into their own beneficial ownership. When umbrella companies have then gone into administration, it has resulted in huge losses of agency funds.
Our umbrella solutions are different:
- The company funds belong to the contractor and not FPS Group
- The company stands as a separate legal entity from FPS Group and all other such entities
- The company banks through a regulated client monies account. The bank warrants this as segregated from FPS funds and so not belonging to FPS Group in the event of insolvency.
The last few years have seen unprecedented levels of change for contractor payroll. FPS Group adapted our systems and processes seamlessly throughout so that agencies:
- Face no prospect of transfer of debt under Managed Service Company (MSC) Legislation
- Comply with Agency Workers Regulations (AWR) by paying the correct ‘comparator’ rate
- Don’t need to make Real Time Information submissions to HMRC – we do
- Have no liability further to either Offshore Intermediary or False Self Employment legislation
- Avoid the considerable burden of administration surrounding Auto-Enrolment Pensions
You can rest assured that FPS Group will continue to develop service offerings long into the future which maintain 100% compliance with ever changing payroll and employment law.
Umbrella Solutions Variants
We offer two different umbrella company solutions. The core fundamentals of each solution are exactly the same, with only subtle variations in the structure of the umbrella company setting them apart from each other. Contractors are free to select which they prefer or alternatively you can elect which variant you prefer contractors to use. Please contact us to find out more about the specific recruitment agency benefits of each.
Flex Umbrella - The contractor will be employed on a full time permanent basis by their own exclusive umbrella company. They will be the sole employee of the company.
Standard Umbrella - The contractor will be employed on a full time permanent basis by a standard umbrella company. There will be lots of contractors working for the same company.
Flex umbrella additional contractor benefits:
- Each contractor will own their own Flex umbrella company. This provides added ring fenced protection of their funds in the very unlikely event of FPS Group insolvency.
- Protection from legal / monetary claims by other contractors
- Flexibility to run the company themselves, assume director responsibilities and enjoy the benefits