Orange Genie News

 

Angela Dawson, IT Contracts Director at Concept Resourcing writes about the rewards and risks of life as a contractor.  

 

Up until April 2016, there was a widely held belief that umbrella companies existed to allow the deduction of legitimate expenses in order to increase contractors’ net income.

We would argue that this was never really true, since less than half of our contractor employees ever claimed expenses, but in any case, it was a long time ago. Nineteen months after legislation severely restricted the value of claiming expenses, umbrella employment companies are still here and still thriving.

 

These are interesting times for the recruitment industry. In terms of compliance, the landscape is changing at speed as the risks of getting it wrong escalate and recruiters take action to protect themselves. In general, we believe this is a good thing. If we can banish the rogues, chancers and naive from our industry and lift the bar of best practice across the whole supply chain, everyone benefits in the long term.

This is a common question and one which frustrates many contractors, you are not alone!

Recruiters have their own preferred supplier list (PSL) and when you start a new contract you can find yourself being asked to use their trusted suppliers. It’s perfectly reasonable for you to want to choose your own umbrella company, but this can cause tension with recruiters who feel a need to control their supply chain.

In the wake of the Criminal Finance Act, which came into effect on 30th of September 2017, we’ve seen a number of leading agencies tightening up their compliance policies. Some are now insisting on respected industry accreditations as a prerequisite for inclusion in their preferred supplier lists. It’s clear that recruiters are more concerned than ever about compliance, with an emphasis on industry accreditation. We believe this is a positive development, but it still deserves some scrutiny.

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