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Important information about compliance
Employee leasing, professional employer organisation, freelance support, contractor support and accounting services (including, but not limited to, the operation of umbrella companies and services supporting personal service company arrangements) may from time to time be offered or provided to or in relation to candidates (including candidates operating as limited company contractors) by APSCo affiliate members (the "Relevant Services"). Affiliate members who offer or provide any Relevant Services within the UK, or who appear to APSCo to offer or provide any Relevant Services within the UK, are required (under the affiliate members' terms and conditions of membership) to undergo an external compliance review of a number of aspects of the Relevant Services ("the Review"). Such Review will be conducted initially on application for affiliate membership and at regular intervals of approximately one year thereafter.
The Review will be undertaken by one of a number of approved external professional advisors, who undertake on-site reviews of the relevant aspects of the service provider’s compliance to applicable UK legislation. The external advisor will provide a compliance report, which the service provider can then make available to members.
APSCo does not accept or assume any responsibility for any claims, demands, actions, proceedings, damages, losses, loss of profit, costs, expenses or any other consequences, whether direct or indirect, arising from the Review. Members, affiliate members and third parties should be aware that the Review, although thorough cannot be wholly relied upon to ensure that the Relevant Services are completely compliant to all UK legislation. The purpose of the Review is to give APSCo members a reasonable level of reassurance that providers of Relevant Services who have undergone the Review appear to have no obvious hallmarks of certain practices which might:
- lead to UK tax or other liabilities for the APSCo members if they refer candidates to such providers or otherwise engage candidates who are advised or supported by or engaged via such providers; or
- otherwise not comply with the requirements of UK tax and other relevant UK legislation in any material respect.
Compliance requirements in this area are very complex and best practice is constantly changing. Although APSCo goes to some lengths to ensure the integrity of the external professional advisors providing the Review, members, affiliate members and third parties must be aware that the Review can not provide any guarantee on which such affiliate members or other members or third parties can rely. It does not replace the need for members and others to carry out their own due diligence, which may include reviewing the results of the Review, using professional advisors. In particular, please note that the Review only covers organisations based in the United Kingdom (it is not possible, within any reasonable fee, to check compliance by companies based and/or operating and/or providing certain services outside the United Kingdom as they will be subject to local legislation and compliance regulations.
Please see below for the list of external professional advisors currently offering the Review process, and some detail about what the review will involve.
1) Becoming a member of the Freelancer & Contractor Services Association (FCSA):
In order to join the FCSA, members must undergo a comprehensive review of their business services, operations, policies, and processes by means of an extensive questionnaire and onsite assessment reviewed by a “Big 4” accountancy firm. Once this process has been successfully completed the file goes to HMRC along with the report from the accountants. This review process is completed annually to ensure that standards are maintained and any changes to legislation are applied. For further information go to www.fcsa.org.uk
2) Completing a full Professional Passport audit:
Professional Passport has developed an audit standard to assess a provider’s compliance. The audits are based on their understanding of HMRC's current interpretation, management, and enforcement of the current legislation applying to the sector. The audit has been designed around a low risk profile and seeks to ensure that providers are not operating in a way that is likely to be challenged by HMRC. Every 6 months the service provider is sent a copy of the audit report and asked to confirm any changes or sign as is, and every 2 years a confirmation audit is carried out to ensure the documented processes and procedures are fully evidenced. For further information, go to https://www.professionalpassport.com/Providers/APSCO/496.
3) Saffrey Champness Compliance Report
Saffery Champness is regulated by the Institute of Chartered Accountants in England & Wales. They will also use the services of a solicitor regulated by the Law Society to deal with legal compliance matters. They will visit the service provider and corroborate the responses given to their initial questionnaire. Their audit report clearly sets out their findings, and provides recommendations for improvements where appropriate. They provide a “reasonable assurance” opinion for the reader of the report, and encourage sending a copy of the report to HMRC. This audit would need to be undertaken annually. For further information contact simon.kite@saffery.com
