How can Recruiters & End Clients avoid exposure to liabilities originating from “dodgy” noncompliant Umbrella companies in their supply chains?
A good place to start is by checking the Umbrella Companies you work with are part of some sort of accreditation or trade body.
Whilst a good indicator of compliance, ultimately the scrutiny provided by these accreditations and trade bodies is limited. This kind of outsourcing of responsibility makes it difficult to illustrate your ownership of supply chain oversight.
You will still need to carry out ongoing and regular spot checks on random samples of payslips and RTI submissions, checking that accurate deductions are taken from the money paid to the temporary workers in your supply chain.
This is crucial so that you can say with conviction that you have taken measures to evidence the correct amount of TAX & NI is being paid to your temporary workers.
Without this level of scrutiny, you are exposed to liabilities and unlimited fines under the Criminal Finance Act (Corporate offence of failure to prevent the facilitation of tax evasion) and other tax avoidance legislation.
The monitoring of your supply chain to this extent brings its own issues and can be an industry in itself creating resource and cost pressures that can distract from your core business.
Leave nothing to chance with Umbrella Check Ltd
Our rigorous and ongoing payroll checks are complemented by the ability to conduct spontaneous on-demand checks for either additional safeguarding or where there is suspicion of non-compliance.