Crawford Temple Professional Passport
What is meant by the term ‘compliance’ ? Who or what defines compliance ? How to understand the risks ?
What is meant by the term ‘compliance’ ? Certification or confirmation that processes, procedures and actions meet the requirements of accepted practices, legislation, prescribed rules and regulations, specified standards, or the terms of a contract.
What is meant by the term ‘compliance’ ? Certification or confirmation that processes, procedures and actions the meet the requirements of accepted practices, legislation, prescribed rulesand regulations, specified standards, or the terms of a contract.
Who or what defines compliance ? ‘The Law’ - Legislation and/or Regulation Ultimately The Courts Enforcement
How to understand the risks? Non Compliant Alternative Views Aligned: Regulators Gatekeepers Enforcers Courts Determine
Financial, brand and reputational consequences increase in line with risk • Highest Risk • Low Risk Non Compliant Aligned Alternative Views
Supply Chain Compliance • Checks need to be across the whole supply chain including third party suppliers • Questionnaires not a robust solution • Agree acceptable risk profile with clients • In house expertise or work with external compliance experts
What’s in a name? • Many generic labels are given to intermediaries • Umbrella • Pay day by pay day model • Personal Service Umbrella • One man umbrella • None of the names given have been statutorily defined • What is important are the facts of the arrangement • HMRC will always consider the actual facts of the arrangements NOT the model/scheme the company says it is operating
Buyer Beware! HMRC does NOT kite-mark schemes and does NOT provide generic advice that a ‘scheme’ or ‘model’ is compliant • Common claims of compliance • We have leading counsel’s opinion • HMRC has agreed our model is compliant • HMRC will not pursue you or your end client for arrears should they arise • Bold statements by the promoters are no guarantee
Offshore Intermediaries What is an offshore intermediary? • This a company which is the employer of a UK worker but who bases themselves outside of the UK and the EEA • What they promise…. • Many of these companies claim that there is no liability for them to pay employer National Insurance – if they have no place of business, presence or residence in the UK there is no obligation on the offshore employer to operate PAYE or pay employers National Insurance Contributions • These companies also claim that no PAYE/ NICs liability will arise on any of the UK companies in the contractual chain
Offshore Intermediaries The reality…. • Where the employer is truly offshore HMRC can use the host regulations together with the agency legislation to place unpaid PAYE/NICs charge on the UK employment business • Alternatively they can use the host regulations to place the charge on the UK end client.
Supply Chain Compliance • What checks are you making on the operating structures of workers supplied by third parties? • What expertise do you have to assess the compliance of providers? • What guarantees or assurances are you providing to your clients? • Are you building unknown significant liabilities in to your business?
Supply Chain Compliance Positively Different Independently verified compliant supply chain
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