RPO Conference SETTING THE STANDARDS Crawford Temple Professional Passport

RPO Conference SETTING THE STANDARDS Supply Chain Compliance

RPO Conference SETTING THE STANDARDS What is meant by the term ‘compliance’ ? Who or what defines compliance ? How to understand the risks ?

RPO Conference SETTING THE STANDARDS What is meant by the term ‘compliance’ ? Certification or confirmation that processes, procedures and actions meet the requirements of accepted practices, legislation, prescribed rules and regulations, specified standards, or the terms of a contract.

RPO Conference SETTING THE STANDARDS What is meant by the term ‘compliance’ ? Certification or confirmation that processes, procedures and actions the meet the requirements of accepted practices, legislation, prescribed rules and regulations, specified standards, or the terms of a contract.

RPO Conference SETTING THE STANDARDS Who or what defines compliance ? ‘The Law’ - Legislation and/or Regulation Ultimately The Courts Enforcement

RPO Conference SETTING THE STANDARDS How to understand the risks? Aligned: Regulators Gatekeepers Enforcers Alternative Views Non Compliant Courts Determine

RPO Conference SETTING THE STANDARDS AlignedAlternative Views Non Compliant Financial, brand and reputational consequences increase in line with risk Highest Risk Low Risk

RPO Conference SETTING THE STANDARDS So what are the risks?

RPO Conference SETTING THE STANDARDS Supply Chain Compliance Checks need to be across the whole supply chain including third party suppliers Questionnaires not a robust solution Agree acceptable risk profile with clients In house expertise or work with external compliance experts

RPO Conference SETTING THE STANDARDS What’s in a name? Many generic labels are given to intermediaries Umbrella Pay day by pay day model Personal Service Umbrella One man umbrella None of the names given have been statutorily defined 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

RPO Conference SETTING THE STANDARDS 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 Buyer Beware!

RPO Conference SETTING THE STANDARDS Offshore Intermediaries What is an offshore intermediary? This a company which is the employer of a UK worker but who bases themselves outside of the UK and the EEA What they promise…. Many of these companies claim that there is no liability for them to pay employer National Insurance – if they have no place of business, presence or residence in the UK there is no obligation on the offshore employer to operate PAYE or pay employers National Insurance Contributions These companies also claim that no PAYE/ NICs liability will arise on any of the UK companies in the contractual chain

RPO Conference SETTING THE STANDARDS Offshore Intermediaries The reality…. Where the employer is truly offshore HMRC can use the host regulations together with the agency legislation to place unpaid PAYE/NICs charge on the UK employment business Alternatively they can use the host regulations to place the charge on the UK end client.

RPO Conference SETTING THE STANDARDS Supply Chain Compliance What checks are you making on the operating structures of workers supplied by third parties? What expertise do you have to assess the compliance of providers? What guarantees or assurances are you providing to your clients? Are you building unknown significant liabilities in to your business?

RPO Conference SETTING THE STANDARDS Supply Chain Compliance Positively Different Independently verified compliant supply chain

RPO Conference SETTING THE STANDARDS Crawford Temple