The ever-moving target of compliance has seen changes, mainly for the better, on how Umbrella PAYE providers should operate properly in areas like National Minimum Wage rules, expense claims and payslip transparency. To confirm our commitment to compliance we have pursued the best-in-class industry credentials and affiliations including APSCo, TEAM, PRISM plus the unique combination of being fully audited/accredited by both Professional Passport and the FCSA.
In April 2016, the Finance Bill or ‘T&S’ legislation was a major shift in the expenses process for many Umbrella workers, because it meant that those who were deemed to be under Supervision, Direction and Control (or the right of) could no longer claim tax relief on travel and subsistence claims. This meant that the majority of claims would now be disallowed as the tighter restrictions around SDC, similar to the ones that had affected CIS contractors a couple of years previously, meant that Umbrella companies had to minimise their potential tax risk. In HMRC’s eyes, the expense claims were open to a certain level of manipulation leaving the exchequer out of pocket, and with this major advantage of using an Umbrella model now gone, many thought that this would be the end of the industry.
However, the Umbrella industry flourished as it still serves a purpose on a basic level for many agencies/end clients looking to outsource and thousands of temporary workers who will be engaged on various assignments and don’t want the hassle of self-employment.