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Office Hours: 9am to 5.30pm
0345 557 1287
Office Hours: 9am to 5.30pm

Surge in Demand for Interim Managers

The continued drive for corporate growth in the UK’s recovering economy has seen demand for interim managers grow three-fold increase over the last 12 months; 70% of those work within the private sector. Companies are now focusing on growth and are looking to Umbrella companies to contract experienced interim managers to manage that process and related change management.

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The HMRC Tax-dodge Clampdown

During 2013/14 the HMRC clampdown on tax dodging marked a new high hitting an unparalleled £23.9bn in additional tax revenue – up £3.2bn year on year. This was a result of increased activity to make sure organisations, contractors and individuals pay the taxes they owe. HMRC collected more than £8 billion from large business, over £1billion from criminals and £2.7billion from tackling avoidance schemes in the courts.

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Number of home workers hits new high

The Office for National Statistics has revealed that out of a workforce of 30 million, more than 4 million employees in the UK work primarily from home – a high percentage of whom being contractors. This is an increase of over 62,000 since this time last year and a 10% increase since 2007.

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Employment Intermediaries Legislation Explained

At the end of 2013, Chancellor George Osborneannounced plans to pursue tax avoidance through so-called ‘disguised’ or ‘false’ employment. But whilst some months have passed since these changes were first communicated, much confusion remains as to what ’employment intermediaries legislation’ means to recruiters and the implications of this – and other legislation – which comes into force as early as April this year.

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A Clear Guide to Staying on the Right Side of the Law

There is an Umbrella model which claims to help employees make ‘savings’ yet still honour their National Insurance Contributions (NIC) and income tax obligations. Known as the ‘Pay Day Relief Model‘, the scheme has been singled out by HM Revenue & Customs (HMRC) as being non-compliant with UK tax and Social Security legislation, but what exactly is it and what are the implications for recruiters?

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Non-Compliant Umbrella Companies Are Risking Your Reputation

Warren Buffet famously said, “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.” In an industry continually under the spotlight, protecting your company’simage and reputation and ensuring you are sending out the right messages are critical success factors. But in testing times and unpredictable conditions, is your Umbrella effective enough to protect you, or is their ‘non-compliance’ a threat to the reputation of your recruitment business?

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2013 Government Legislation

In 2013, the Government introduced legislation that would effectively stop the use of this type of scheme by contractors placed by recruitment agencies and one would hope that this would solve the problem.

Indeed, many large recruitment agencies carried out due diligence on their preferred providers to try to root out the rogues. However, it now seems that the legislation has actually made it more difficult for contractors to know where they stand.

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