No Offshore Structuring
Offshore structures designed to avoid paying the right level of tax are a danger to UK recruiters and contractors. FPS Group's umbrella solution is 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 solution.
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 solution is 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.