Compliance is key so it’s paramount that you do all you can to be sure that you’re only working with legitimate umbrella companies. That’s where your preferred supplier list comes in.
To give you peace of mind and help you understand what to look for when putting together your PSL, we’ve put together a compliance checklist for umbrella companies.
Awareness of legislation
Any legitimate company will be up to date on current and impending legislation and can advise what impact this will have on you. Your umbrella company should have a team of compliance experts who can explain what impact this will have on your working practices to ensure you always do what’s right.
At Parasol, our team are experts in all things compliance and tax, so you will always receive the best advice possible.
Umbrella employees are entitled to full employment rights under their contracts and any company is required to be aware and fulfil this without question. You should be wary of any company which does not offer information about the level of benefits which they offer or does not offer benefits to its employees.
This also means that umbrella companies have an obligation to pay their employees the National Living Wage for their work not including allowances for expenses and Benefits in Kind.
Umbrella companies are all subject for a series of auditing each year which should be undertaken by an independent governing body. Be sceptical of any company who cannot prove that they have conducted these audits or who have not used an approved body to do this for them.
A clean compliance record from HMRC
In 2017, HMRC introduced the Criminal Finances Act as a way to crack down on tax evasion. The rules are far more stringent and any result of non-compliance including referring your clients to this company could land you in hot water.
They comply with all UK laws
If you’re using a UK-based company, they should be registered with Companies House, be able to verify their ownership and share their registration number upon request.
At Parasol, we take compliance very seriously and we work hard to make sure our recruiters and employees are taken care of. Our top priority is always in the security of recruiters and employees.
For more help with putting your PSL together, take a look at our guide.