Finance Directors Forum SETTING THE STANDARDS Crawford Temple Professional Passport

Finance Directors Forum SETTING THE STANDARDS Supply Chain Compliance

Finance Directors Forum SETTING THE STANDARDS Professional Passport Largest independent specialist service provider compliance specialist We have audited and approved the processes and procedures of 18 umbrella providers We have audited and approved the processes and procedures of 14 accountancy service providers The largest selection of audited and approved providers The only insurance backed accreditation on the market We work with all sectors Contractors, Recruitment Companies, End Clients and Providers

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

Finance Directors Forum 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.

Finance Directors Forum 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.

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

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

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

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

Finance Directors Forum SETTING THE STANDARDS So what are the risks?

Finance Directors Forum 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

Finance Directors Forum 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 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

Finance Directors Forum 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!

Finance Directors Forum 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

Finance Directors Forum 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.

Finance Directors Forum SETTING THE STANDARDS Supply Chain Compliance What checks are you making on the operating structures of workers supplied by third parties? How do assess your PSL providers? 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?

Finance Directors Forum 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.

Finance Directors Forum SETTING THE STANDARDS Supply Chain Compliance Positively Different Independently verified compliant supply chain

Finance Directors Forum SETTING THE STANDARDS The Compliant Umbrella Providers Operational Handbook Details the operational processes and procedures that must be applied for an umbrella to be considered compliant Creates a benchmark standard for accepted practices Transparency

Finance Directors Forum SETTING THE STANDARDS Crawford Temple