Today’s blog focuses on the events/PR sector.
Whilst no different to any other sector, adherence to the numerous, and often complex HMRC guidelines/requirements require focus and close attention.
Whilst “cheap” is no doubt good for the bottom line, does this provide longevity in either the solution of the long term for a business?
At ePayMe, we work with many within this sector. Similarly, we speak with a plethora of prospective clients and come up against a couple of common themes, but the overriding one is that many promotional agencies still pay staff on a “self-employed” basis.
No doubt, historically, this was a grey area, however in 2014 HMRC defined the status of promotional staff and resultantly the tax obligations of these workers; “Agency legislation applies where a worker provides services to an ‘employer’ through a third party in such a way that, technically, the worker is not an employee of either.”
The remuneration receivable is treated as earnings and is therefore chargeable to tax under employment income. Accordingly, all the employment income rules apply and PAYE must be operated by the payer”.
Supplying workers from an “offshore location” also remains under the spotlight. Whilst again, such tactics are adopted by some to negate employment taxes and avoid having to fulfil their legal rights and obligations. Why leave yourself exposed? The spotlight continues to shine brightly on those operating within these non-compliant waters.
Whilst PAYE remains an expensive route, coupled with the fact workers are on an agencies internal payroll, where many seek benefit is by migrating these workers off payroll and engaging a reputable, compliant and knowledgeable outsourced payroll provider. This is where ePayMe come to the fore, engaging workers on an overarching worker agreement, giving workers the flexibility to work multi agency (whilst not being penalised for multiple jobs/assignments) and ensuring all deductions are made, correctly at source, with all reporting provided to HMRC.
Is optimising your bottom line, at the expense of compromising your workers or the lifespan of your business worth it? The penalties are severe, the net is closing, and quickly. HMRC are making no secret of their intent to clamp down on undeclared income. In addition to the worker in question, their first point of recourse will be to the agency.
Make sure you are not in the spotlight – call ePayMe on 01252 863700 to understand how your business and workers, can be supported.
Regards
Derren Powell
Business Manager
ePayMe