Intermediaries have their own sets of rules, bringing them into the frame to pay PAYE when they otherwise would not have to. They also have their own sets of rules about who foots the bill when the paying company fails to pay: with a managed service company it can fall on the directors or the promoters, and with an umbrella company new rules from April 2014 will pass the liability on to the agency.
Most of David Kirk’s business over the last fourteen years has been gleaned from the intermediary sector, which includes employment agencies and employment businesses. He had several years’ experience as a recruitment consultant before returning to accountancy practice, so he knows what life is like at the sharp end.
This sector, like many others, has its own set of regulations – the Employment Agencies Act, the Conduct Regulations, gangmaster licensing, the Agency Workers’ Directive, the Construction Industry Scheme – which those involved in it need to know well. Their accountants often do not – a pity, as the regulations frequently require them to do things that are disadvantageous for tax.
In fact, intermediaries have tax laws all of their own as well. Some of them may get unwittingly caught up in the managed service company legislation, which makes their directors personally liable for PAYE debts. Absolutely top-quality advice is required here to keep agencies out of trouble.
By specialising in this sector David has acquired a good working knowledge of the regulations that apply to it. He will put them to good use in finding solutions to your requirements.
He is currently advising an employment business on a £1.3 million Construction Industry Scheme inquiry.