Last week we shared important information surrounding incentives given to recruitment consultants https://www.epayme.co.uk/your-provider-may-giveth-but-hmrc-may-taketh-away/
FCSA have recently published information regarding the HM Revenue & Customs investigating recruitment consultants, and made the following statement ‘Recruitment agencies please beware! Last week some recruitment consultants starting receiving bills from HMRC for unpaid tax on incentive payments. It seems that the consultants received payments from one or more umbrellas, and no tax was paid on the income, hence the bill from HMRC. If your staff accept monies, vouchers or any other benefits in kind from an umbrella or accountancy provider, it should be treated as taxable income. A failure to declare this may breach the prevention of tax evasion set out in the Criminal Finances Act 2017, even if you do not know it has taken place. You can mitigate your risk by only working with trusted suppliers on your PSL, and having robust policies and procedures in place that are communicated to all staff regularly’.
With HMRC’s investigation now taking place, and compliancy being a key factor with this review and many other cases which have been in the public domain over the past 6-12 months. What better time to review your current PSL of payroll providers to prevent putting your business and consultants at risk.
Why not complete our compliancy health check and see how ePayMe can be an added benefit to your business, consultants and candidates with our diverse range of products suit all sectors.