No need to set an alarm this morning – this news certainly woke me up……………………..
SDC and PSC are words synonymous within the contractor, temp and the wider Recruitment Process Outsourcing (RPO) sector.
But, HMRC, via Companies House have today published a game changer and it’s huge!
In short, Companies House are viewing, SDC and PSC as one and the same. This will be known as “People with Significant Control” (PSC).
The upshot is simple, the exodus to people setting up Ltd Companies, will soon see these same individuals looking for an appropriate and future proofed solution (this is where ePayMe come in, having stayed true to their solution offering following the 2016 Finance Bill T&S changes).
In essence what does this all mean? Well;
- PSC will now target the business owner/director and they will be deemed wholly liable for all work carried out.
- This will categorically uncover disguised employment.
- A contractor with their own Limited Company working via intermediaries is treated as “disguised”. Robust controls and reporting are already in place to monitor and target those continuing to operate in such a manner.
- Be under no doubt, HM Revenue & Customs together with Companies House are treating this seriously, and rightly so. The spotlight is on, and those operating in this “grey” area are running a significant risk and will pay the consequence (criminal penalties).
In no doubt is this scaremongering, this is fact – and from 30th June 2016 all people with significant control need to have been documented and reported to Companies House. This will be known as the “Confirmation Statement”.
Find out more here – https://www.gov.uk/government/news/the-small-business-enterprise-and-employment-bill-is-coming
If you’re impacted by this, and many will be, contact ePayMe on 0800 6226119 and engage with a provider delivering a future-proofed solution with an unrivalled service and product offering.
Derren Powell
Business Manager
ePayMe
derren.powell@epayme.co.uk