As a compliant umbrella, JMK is always looking for new ways to support our contractors, as well as keep an eye on the industry for things that might provide further help.
Our friends at the FCSA have recently launched a new initiative which is designed to protect contractors from non-compliant umbrella providers and help ensure that their tax obligations are being met.
In this article, we look at the FCSA’s new Contractor Payslip Review, explaining how it might be able to help you.
The Freelancer and Contractor Services Association (FCSA) has been promoting compliance in the industry since 2008. It is a champion for contractors and aims to help ensure that recruiters, umbrellas, and other companies maintain compliance and deliver the highest standards to contractors.
As the umbrella industry remains unregulated, there are still lots of non-compliant umbrellas out there looking to take advantage of contractors and, at worst, these companies can leave you with large unpaid tax bills and hefty fines.
Working through an umbrella company can seem complicated, with many contractors not sure of what to expect when it comes to deductions from their pay. This can make it difficult to tell if you are being paid correctly.
The FCSA have developed a free Contractor Payslip Review (CPR) initiative, which allows contractors to upload their payslip to be checked for correct calculations. This will also ensure that you’re meeting your tax obligations.
The initiative has been met largely positively from the industry, who welcome any scheme that can help highlight compliance and raise standards.
If you are employed through an umbrella company, all you have to do is upload your payslip and reconciliation statement to the FCSA website. It will then be checked for accuracy by independent and industry leading compliance software, SafeRec. Results will be returned within seven working days.
The report will explain each area of the contractor’s payslip, including tax, National Insurance Contributions, and student loan deductions, this will help you better understand your payslip and how your tax responsibilities are met.
The service is available to any umbrella employees, they don’t have to be registered with the FCSA and is a confidential and free service.
If the Contractor Payslip Review (CPR) finds a small discrepancy in a payslip from an FCSA umbrella company, they will feed back the information to the contractor and the umbrella company so that it can be rectified. If it’s a systemic problem, the FCSA will launch an investigation themselves.
The FCSA will not disclose your identity to any umbrella company without prior consent.
With the umbrella industry remaining unregulated, those of us who are compliant welcome any initiative which seeks to improve transparency and accountability. And as HMRC’s name and shame list of tax avoidance schemes continues to grow, this initiative might just catch a couple more culprits.
We’re also facing high reports of salary skimming (unethically retaining more money from pay than just a margin), including a recent allegation against an FCSA-accredited umbrella, and more and more holiday pay scandals.
With the umbrella industry split between compliant companies trying to deliver a high standard of service to contractors, and those seeking to do the opposite, we welcome this initiative.
And while the CPR is in its infancy and there may be bugs to iron out, we’re looking forward to it providing much needed clarity, transparency, and peace of mind to contractors.
If you’d like to find out more, please don’t hesitate to contact us.
Since 2002, JMK have been compliantly consolidating back-office, accountancy and payroll functions.
We have evolved to provide a range of expert services; such as Funding, becoming a leading provider to the contracting industry.
We know every agency is different in some shape or form, even if only by a little, but important bit. Combining our knowledge and experience of multiple sectors enables JMK to support you all from recruiters and payroll, through to finance, compliance and management.
With JMK as your trusted partner, even the smallest team can process the largest payroll, regardless of payroll type.
Have a look at the wide range of services our Funding can provide to you and your business, it is far more than just payroll and finance.