For recruitment agencies, the relationship between them and their contractors is built on trust. Candidates rely on consultants to provide the best possible advice in regards to their finances and salary. This is why it’s vital that agencies use a clear, concise and compliant umbrella company for support. We explore how agencies can benefit from a compliant payroll provider below.
Taking on the payroll burden
The most obvious advantage for an agency to use an umbrella company is that it reduces the administrative burden for them. The agency no longer has to worry about how the contractor is going to get paid. Instead, recruiters can concentrate their energy on searching for skilled talent and supporting them through the hiring process, without having to juggle the work surrounding PAYE, NICs and other common paperwork and queries.
Cloud9 Umbrella is proud to provide efficient, same-day payments on weekdays for all their clients. As we offer clients same-day Faster Payment, the day we receive funds from agencies we can then transfer our clients pay to them. What’s more, to keep clients in the loop, we send a quick text informing them that their funds are on the way, to ensure a smooth, stress-free experience for all parties involved.
The consequence of non-compliance
It’s vital that recruitment agencies do not promote non-compliant umbrella companies to their candidates. Using or referring to an umbrella company that promotes tax avoidance schemes would result in penalties and repayment of unpaid tax for the contractor from HMRC. However, with the implementation of the Criminal Finances Act 2017, HMRC is focusing on holding individuals and corporations accountable for facilitating tax evasion. What this means for recruitment agencies is that if individual consultants recommend or refer their clients to non-compliant umbrella providers, they will also be liable for serious penalties or even prosecution. It’s strongly recommended that agencies implement a preferred suppliers list of umbrella companies that are accredited by professional trading bodies in the industry, such as Professional Passport, PRISM, APSCo or FCSA, to provide reassurance that the relevant due diligence has been carried out.
Full support from the Cloud9 team
As industry experts, Cloud9 Umbrella provides regular updates and insight into changing legislation as well as ensuring all processes remain compliant. Alongside, the expected administrative support an umbrella company can deliver, Cloud9 has an open-policy for agencies to contact them on any concerns they may have on taxation, employment rights or legislation changes. We provide assistance by taking the burden from agencies and having our specialists offer bespoke advice to contractors’ on their working situation. Our team also offer full employment support, assisting with rates, understanding employment costs and any other query. This leaves recruiters able to successfully focus on other areas of their business.
Cloud9 Umbrella can support you and your candidates with our straightforward, honest and compliant payroll service. Give us a call on 0207 078 0212 or drop our Business Development Manager, Natasha, an email at [email protected] to arrange a chat and find out more about how we can help you.