1. Recruiter International Compliance Conference Louise Rayner – Independent Compliance Consultant Louiserayner@outlook.com 07899937083 February 2014 Louiserayner@outlook.com

2. 2 Ben is a contractor  Previously a permanent employee  He lost his job where he was a part owner, he received a compromise settlement of £70k. £15k of which related to sale of shares, £23k is not payable until next tax year when he is out of restrictive covenants.  He started a 3 month contract. He has since had 3 other contracts and now see’s him self as a contractor.  He is working part of the year in South Africa  He typically earns circa £40k p.a  He has 2 flats and gets rental income from them  He sold his holiday home this year to free up funds for his daughters university fees  His wife doesn’t work and has no income  This year he sold some other shares  He is considering making provision for his pension  His mother is ageing and gave him a gift of £80k this year  He has children and is interested in planning re inheritance

3. 3 “A buyer & a seller of compliance services in the recruitment market”  18 years’ experience in recruitment and outsourcing  Adecco, Head of UK Finance – implemented the biggest temp payroll in the UK (40,000 per week) & the Travel & Subsistence Dispensation scheme. SOX  Randstad Managed Services – Commercial Director  RSM Tenon, Head of Operations – outsourcing for 400 SME client  MD/FD of JSA (umbrella/soletrader/Ltd co)  Qualified FCCA  MBA, thesis “commercial pricing in RPO/MSP environment”

4. 4 Compliance issues that I get asked most about;  A/PSL Intermediaries – ITEPA 44/Finance Act/IR35/offshore/employment status  AWR  WTR  ID Checking  Employment Tribunals  Bribery  Managed Service Legislation  Insurance  Pensions auto enrolment

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6. 6 Most common operational issues  Inadequate/confused checks at ASL selection  Poor contract/document review  Use of “any intermediary” even when an ASL exists  Consultant “brown envelopes”  Lack of awareness re off shore intermediaries  No ongoing audits  Intermediaries who cannot explain a tax calculation or don’t ask for/ignore relevant information

7. 7 Mystery shopping results - 15 intermediaries  100% sounded confident  100% claimed compliance & made reference to HMRC  Only 4 could adequately explain the tax calculation, when quizzed  5 made totally false claims

8. 8 The most common logo’s in the umbrella & Ltd Co services market Give you a feeling of compliance?

9. 9 The next common logo’s in the umbrella & Ltd Co market Give you a feeling of compliance?

10. 10 Ben is a contractor  Previously a permanent employee  He lost his job where he was a part owner, he received a compromise settlement of £70k. £15k of which related to sale of shares, £23k is not payable until next tax year when he is out of restrictive covenants.  He started a 3 month contract. He has since had 3 other contracts and now see’s him self as a contractor.  He is working part of the year in South Africa  He typically earns circa £40k p.a  He has 2 flats and gets rental income from them  He sold his holiday home this year to free up funds for his daughters university fees  His wife doesn’t work and has no income  This year he sold some other shares  He is considering making provision for his pension  His mother is ageing and gave him a gift of £80k this year  He has children and is interested in planning re inheritance IHT CGT Inc Tax Corptn tax Empl Status IR35

11. 11 These SHOULD be the indicators of compliance! 7 years training “Practicing Certificate” ie licensed to charge for advice CPD to keep them up to date Be aware the word “accountant” is not a legal definition and can be used in vain.

12. 12 Practical tips  Location – check not registered or associated offshore  Financial stability – bank statements/cashflow  Offering choice of service  Relationship with advisers - spend  Technology – check integrated, disaster recovery  Regular mystery shopping – contractor opinion  Internal audits – check your consultants operate the PSL  Directors backgrounds - phoenix companies  Check that they are REAL ACCOUNTANTS with something to lose. Check for logo, Get membership numbers

13. 13  Louiserayner@outlook.com Louiserayner@outlook.com  07899937083