New HMRC IR35 Rules – Is Your Agency Complient?
Rugby Recruitment do not use controversial Zero Hour contracts or pay their temporary workers via the Swedish Derogation model. We pay via PAYE, we run our own payroll and we are linked to HMRC. We comply with AWR (Agency Workers Regulations) and we are members of REC, The Recruitment & Employment Confederation which is the largest trade body within the UK recruitment industry.
However some agencies pay their contract staff through a variety of methods and it is worth considering how they may affect your business if they are not compliant with HMRC regulations.
If your agency has contract/temporary staff working via a personal service company, they may not be compliant with recent changes in HMRC regulations.
From April 2017 payments to contractors need to be compliant with new changes in IR35 regulations. Their pay may need to be treated as employment income and also subject to the deduction of Employers National Insurance.
Your agency will be responsible for ensuring that the correct deductions are made and they will need to submit their details to HMRC. If your agency is failing to comply it may come down to your company picking up the bill.
One way to discover if your agency is keeping to the new regulations by visiting the new HMRC online guide. It may help you to decide whether the contractor should be paying National Insurance.
You can check out this here.
Our contract staff comply with all HMRC rules and regulations. The Recruitment & Employment Confederation have audited our process and we passed with flying colours.
If you require help employing contract staff please get in touch with us today.
Rugby Recruitment Services Ltd