Attention Recruiters! Why it’s vital to know your suppliers are compliant.

At Orange Genie we talk a lot about compliance. We advise contractors and recruiters alike to work with accredited FCSA members, so they can be certain their partners are trustworthy. This is an example of why we believe that message is so important.

Geoffrey, Joshua and Andrew Copp, who ran Central Payroll Services (later rebranded as Quality Premier Services) have been jailed for stealing £45 million while running umbrella payroll. They were convicted of conspiracy to defraud the public revenue and money laundering between February 2012 and December 2015.

The company was declared insolvent in November 2015. A number of agencies had to pay their contractors directly, having already paid QPS. In the joint liquidators’ progress report, published in December 2016, agencies have provided details of potential preferential liabilities totalling £270,000 on behalf of temporary workers.

While this may be an extreme case, it’s far from unusual. There are still many organisations out there who believe they can operate outside the law, putting recruitment agencies and contractors at risk as they do. The reality is that it’s highly likely these companies will be caught. This would not only leave you in desperate need of a new supplier, it could leave you out of pocket – as in this case. Worse, it could leave your contractors, or even your agency, at risk of an unlimited fine or maybe even a prison sentence.

To protect your business and your contractors, our advice is to make sure your umbrella suppliers are accredited members of FCSA. Accredited members are subject to a detailed, annual FCSA review against the most demanding compliance standards in the industry, and the findings are shared with HMRC.

To find out how Orange Genie can help with your compliance questions, or anything else at all, please contact our expert team on 01296 468 483 or email recruiters@orangenie.com.

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