SPA Launches First Service Providers Code of Conduct For Umbrellas
Date: November 25, 2009
The Service Providers Association (SPA), an independent organisation that represents umbrella companies and businesses which provide administrative support services to limited companies, has announced the launch of a first ever code of conduct.
The Code of conduct outlines minimum standards and legal guidelines that apply to services providers, encouraging best practice across the industry. The SPA members will now have to undergo an independent review by the Big Four (PWC, Deloitte, KPMG and Ernst & Young) accountancy practices and submit documentation voluntarily to HMRC to demonstrate their commitment and transparent business practices along with ethical trading standards. This new provision is to ensure that only legitimate and compliant umbrella companies can offer their services within a market saturated by providers many of whom may be operating outside of HMRC guidelines in order to entice contractors to their umbrella. A spokesman from SPA said “Freelance workers and regular user of the services we provide, will also be reassured that they are dealing with professional organisations.”
The initiative has been welcomed and supported by HMRC and a spokesman said “The code of conduct is a commitment of effective self-regulation and transparency in dealing with HMRC and a positive step in reducing compliance burdens and HMRC is pleased to give advice on its interpretation of the law to those wishing to devise a regulatory framework.”
The Recruitment and Employment Federation (REC) and the Association of Professional Staffing Companies (APSCo) have also welcomed the Code of Conduct. Kevin Green, chief executive of REC and Ann Swain, chief executive of APSCo reiterate that the audits by independent bodies and HMRC revision will provide increased confidence to end clients.
