Umbrella Compliance & Legislation | Atlantic Umbrella

Compliance & Legislation

FALSE SELF EMPLOYMENT

On 6th April 2014 HMRC’s legislation on agencies and temporary workers became live. This now places the liability for workers not being paid via a PAYE payroll squarely with recruitment agencies.

In addition, where any workers are engaged outside of a PAYE payroll, the agency now also carries the responsibility for demonstrating to HMRC why this is so.

Exact guidance on how they should do this has still not been issued.

But, because Atlantic is a pure PAYE Umbrella we do not provide workers with any additional models for being paid, such as self-employment.

It’s vital that any agency engaging with a provide knows and trusts who they are dealing with.

Atlantic offers purity and entirely UK-based employment of workers.

View our fact sheet or call to speak to us about he likely reporting requirements and what we can provide you with. You can also visit www.employment-status.co.uk

Download False Self Employment Fact Sheet

AGENCY WORKERS REGULATIONS

The Agency Workers Regulations were implemented in October 2011 and consequently since then all employees of Atlantic Umbrella are deemed to be in scope.

We therefore operate both Swedish Derogated contracts of employment (making payments between assignments (PBA)), as well as Match Pay/Comparable Pay employment contracts, dependent on the requirements of the agency.

 Download Agency Worker Regulations 1

 Download Agency Worker Regulations 2

OFF-SHORE PROVIDERS
The Off-Shore Intermediaries Legislation of April 2014 now leaves the agency with the responsibility for any unpaid Employers National Insurance Contributions attributed to workers operating through off shore providers. This represents a strengthening of the previous host employment rules.

Although yet to be confirmed, it is likely that the agency will face similar reporting requirements around this as with the agency and temporary workers legislation.

PENSION AUTOMATIC ENROLMENT

Under Automatic Enrolment all employers will be required by law to automatically enrol their workers into a qualifying pension scheme and apply pension contributions to their pay. This includes Umbrella Companies.

From January 2014 we began to enrol all our employees into our contractual enrolment scheme, provided by Scottish Widows.

Our pension scheme with Scottish Widows represents a far better option than the Governments standard NEST (National Employment Savings Trust) scheme, offering a far superior product to our employees whilst more than meeting our obligations as an employer under Automatic Enrolment.

What does it now mean to you the contractor?

We will automatically enrol employees into our contractual enrolment scheme when they join us. Everyone will have the option to cease membership of this immediately if they wish, although our scheme does benefit from extremely low rates as well as being entirely portable.

UP TO DATE CONTRACTOR SATISFACTION SCORES

We want to know what our customers think of us. Each month we ask our contractors for their feedback. The results go straight into our customer satisfaction survey scores. The results are always genuine and come from real contractors.

We know that new customers will want to know what others think about our service and we so we are very happy to share these with you.

View our Customer Satisfaction Survey Results

PERSONAL SERVICE COMPANY (PSC) & IR35

Working through your own limited company (PSC) remains a legal alternative to seeking employment status via an Umbrella Company like us. The PSC option will be the right choice for some, but only if the contract is not subject to IR35.

Atlantic Umbrella is exempt from both IR35 and the Managed Service Company legislation and offers greatly reduced administration and responsibilities.

Before setting up a PSC and using a dividend model to enhance tax efficiency, it is vital that you 100% confident of your contract and IR35 position.

IR35 UPDATE

The introduction of the Business Entity Test has given HMRC a tool to help officers undertake enquiries more quickly. The message from them is clear; they are not messing about and they will be looking to raise more enquiries, asking for evidence of why individuals are outside IR35 rather than investigating each circumstance. The business entity test is a simple set of 12 questions generating a score of risk.

The Good news is that should you be a low risk, then HMRC will leave you alone for three years!

HMRC are reportedly reckoning on their enquiry time shrinking from almost two years to around three months.

Take our Business Entity Test now to see if you are affected by IR35.

 Download our guide to IR35

MANAGED SERVICE COMPANY LEGISLATION

The Managed Service Company (MSC) legislation has been in force since 2007, with the aim of reducing ‘unfair competitive advantage’ amongst workers compared to ‘compliant businesses and workers’.

As a PAYE Employment Based Umbrella Company, Atlantic Umbrella enjoys exemption from the MSC legislation and we therefore represent no third party debt transfer risk under MSC.

For providers offering other solutions in addition to PAYE Umbrella, the legislation may remain an issue.

Atlantic offers purely PAYE Umbrella with all our workers employed by us.

EMPLOYMENT INTERMEDIARIES LEGISLATION & THE AGENCY NEW REPORTING REQUIREMENTS

Effective from 6th April 2015 and as part of the Finance Bill of September 2014, employment intermediaries must submit quarterly data to HMRC on all workers paid outside of the Pay As You Earn (PAYE) model.

The first deadline date for reporting submission is 5th Aug, for the reporting period 6th April-5th July. Clear penalties are in place for late, incomplete or incorrect submissions.

Download our factsheet to learn more about the current requirements and where we can help you meet your obligations.

Download The Fact Sheet

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