The landscape is set to change for Umbrella Companies with the new T&S Legislation – How Accentra can help you
As you are all aware the much debated T&S legislation is now a reality, which means from April 2016 most of your contractors will not be able to claim expenses incurred towards travel and subsistence. This will mean traditional Umbrella Payroll will not be a viable option going forward for contractors and agencies, leaving only two possible alternatives:
- Personal Services Companies
- Standard PAYE
The PSC option will have a huge impact on the way Agencies process their back office data and the way contractors get paid. Umbrella companies like yours will have very little control over contractor’s payments and HMRC liabilities, which can result in failure of the PSC model itself – particularly the weekly paid contractor base.
Needless to say, with the PAYE option, Agencies will be hit with significant additional costs arising out of ERNI, Pension and Holiday Pay in addition to exposing them to some challenging compliance responsibilities related to RTI, Auto Enrolment and other Employment legislations.
The good news is, we have solutions for you!
We at Accentra have thought about this scenario and have been working very hard during last several months. Our solutions have been designed to allow Umbrella businesses like yours to continue to provide significant value to Agencies and Contractors and generate revenue.
Business as usual for Agencies and Contractors keep their take-home intact. Contact us if you are interested in knowing what we have in store for you.
