As part of preparations for IR35 in the private sector auditing your supply chain is extremely important.
You need to be confident that the Umbrella companies you work with are compliant and do not expose your business to any risks in light of the debt transfer legislation.
https://www.gov.uk/hmrc-internal-manuals/employment-status-manual/esm5660
“When an employment intermediary is a company a relevant PAYE debt which is not paid by the ‘relevant date’ may be transferred to the director(s) or officer(s) of the company”
As is stands there seems to be only two ways to review your supply chain.
1. Look for accreditations such as Professional Passport or FCSA
2. Get to know the companies you work with and asked for evidence that your contract workers are paid correctly.
Regrettably accreditations aren’t always as robust as they appear and, in some instances, companies can pay to become accredited and avoid scrutiny.
Getting to know the companies in your supply chain is the best option not only can it improve process and your contractors experience it also helps protect your business.
At Quad Management Ltd we pride ourselves on transparency and compliance. We regularly take part in payslip audits to give the recruitment agencies we work with peace of mind that their contractors are paying the correct amount of tax and everything is reported correctly to HMRC.
If you would like to discuss working with a complaint and reliable Umbrella Employment company contact Quad Management.