Audit and Compliance Conference SETTING THE STANDARDS Crawford Temple Professional Passport What’s in a name?

Audit and Compliance Conference SETTING THE STANDARDS Professional Passport Largest Independent Specialist Compliance Assessor 20 Approved Umbrella Companies 14 Approved Accountancy Service Providers We provide the ‘due diligence’ appeal for our Recruitment Company members Our Recruitment Company members have £5,000,000 insurance against MSC Debt Transfer Liabilities Recruitment Company members can provide their contractors free access to our website

Audit and Compliance Conference SETTING THE STANDARDS Professional Passport Jobs Circa 20,000 active jobs Tens of thousands of applications to recruiters every month Paid for job sites now put their jobs on the site to benefit from our traffic volumes Linked with all the main multi-posters FREE for recruitment companies to post

Audit and Compliance Conference SETTING THE STANDARDS What’s in a name?

Audit and Compliance Conference SETTING THE STANDARDS Onshore and Offshore Employment Intermediaries Summary What is an umbrella Planning and Actions

Audit and Compliance Conference SETTING THE STANDARDS Offshore Employment Intermediaries Consultation Key Facts Final details are still to be confirmed Recruitment Companies will be held liable for tax if they supply workers who use offshore arrangements Significant reporting requirements placed on recruitment companies

Audit and Compliance Conference SETTING THE STANDARDS Onshore Employment Intermediaries Consultation Key Facts Final details are still to be confirmed Recruitment Companies will be held liable for tax if they supply self-employed workers who are not self-employed Significant reporting requirements placed on recruitment companies

Audit and Compliance Conference SETTING THE STANDARDS Offshore and Onshore Employment Intermediaries Consultation HMRC has confirmed that: The final legislation will make it clear that Umbrella Companies and PSC’s are outside the scope of the legislation There will be an appeals process where ‘due diligence’ can be demonstrated

Audit and Compliance Conference SETTING THE STANDARDS Offshore and Onshore Employment Intermediaries Consultation Conclusions Recruitment Companies need to know how their workers are operating Cannot rely on light-weight questionnaires Ignore company assurances and examine the facts Evidence your ‘due diligence’ process Build systems to meet reporting requirements

Audit and Compliance Conference SETTING THE STANDARDS What’s in a name? Many generic labels are given to intermediaries Umbrella Pay day by pay day model Personal Tax Relief model Personal Service Umbrella One Man Umbrella Self-Employed Payment Intermediary Employment Intermediary 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

Audit and Compliance 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 You must know the facts and demonstrate the steps you took to establish them Buyer Beware!

Audit and Compliance Conference SETTING THE STANDARDS Umbrella Definition An umbrella company is a company that employs workers on an overarching employment contract to be engaged at a series of temporary workplaces through a range of temporary assignments. All payments have full PAYE applied and are subject to the National Minimum Wage.

Audit and Compliance Conference SETTING THE STANDARDS Overarching Employment

Audit and Compliance Conference SETTING THE STANDARDS Relationships

Audit and Compliance Conference SETTING THE STANDARDS Offshore and Onshore Employment Intermediaries Consultation Actions Robust Provider Due Diligence Design internal process or Outsource process Build systems to meet reporting requirements

Audit and Compliance Conference SETTING THE STANDARDS Actions Provider Due Diligence – Professional Passport Current Providers Review Approved Providers Create PSL Join Professional Passport to benefit from £5,000,000 Debt Transfer Insurance

Audit and Compliance Conference SETTING THE STANDARDS Actions Watch out for final legislation for exact detail on: Appeals Requirements Reporting Requirements Liabilities

Audit and Compliance Conference SETTING THE STANDARDS “If you think compliance is expensive – try non-compliance.” Former U.S. Deputy Attorney General Paul McNulty

Audit and Compliance Conference SETTING THE STANDARDS Crawford Temple