TBOS - The Back Office Solutions Ltd.

 

Our friends at TBOS have put together this useful check list that all recruiters need to follow and use, for more of the services TBOS can provide for your business with please follow the links.

Employment law and legislation is constantly changing, and it's important as a recruitment agency that you can keep on top of it all. Missing out on certain checks can not only make your company look bad, but you could fall into legal action as well, and that's never good. Make sure that your agency is compliant by double and triple checking all the points below.

Documentation – Each client will require their own specific set of paperwork and information before they will place a candidate, so liaise with your client to ensure that you have the correct documentation before beginning the placement. This will lead to a speedy placement as well as a legally safe one.

Candidate details – As above, make sure that your candidate has all the details required by the client in order to make sure you get a speedy placement. Double check that the details your candidate has given you are 100% correct, because some of these can lead to headaches later (such as incorrect bank details) or legal repercussions (such as permission to work in the country). Don't offer forward a candidate until you know that they are who they say they are.

Contracts – All contracts should be agreed upon and signed before candidates begin work. This provides each party with legal recourse and backup, and also makes sure that everyone knows their role, so as to avoid later confusion. In order to speed up this process, you may want to introduce trigger clauses (e.g. the candidate agrees to the contract by starting work) or e-signatures.

Agency Workers Regulations – Communicate with the client to make sure that your candidate is being paid correctly. It is a requirement for your candidate to be paid at least as much as a permanent employee, including benefits. Keep records of your client liaisons in case you need to provide evidence of your information in future.

Umbrella companies – Investigate the company that your client is going to be working for, or get hold of a list of approved Umbrella Companies. Make sure that they abide by AWR and that all of their processes are compliant. Once again, having your own records of the company's details will keep you secure in case of future legal action.

International Regulations – It's important to take note of the laws of another country before placing a candidate there. Make sure that their policies are in line with your own, and that your placement is eligible. It's also worth taking note of financial regulations in international placement, such as withholding tax, to make sure that you will actually see a return on your investment.

Fraud – All of the above checks should help protect you against fraud, but that's not always the case. Check out Safer Jobs who are helping to raise awareness of fraud in the industry, and make sure to double and triple check everything before placing candidates.

 

 

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All contractors need to consider the IR35 tax legislation issue which was introduced in 1999, and took hold in April, 2000. Below we have explained the ruling in more detail as well as listing its effects on contractors.

IR35 Explained

The legislation means that HM revenue can tax some contractors as if they are employees of their clients. Contractors caught by IR35 can pay considerably more tax which can see their pay being reduce by up to 25%

Contractors falling under IR35 will see the following apply to them:

  • Employers N.I. of 12.% applied to all gross earnings*.
  • Employees N.I. of 11% paid on all earnings within lower bracket.
  • Employees N.I. of 1% paid on all earnings within upper bracket.
  • PAYE of 40% paid on all earnings within higher rate tax bracket.

* Gross Earnings = (Revenue – Expenses) * (1/(1+employers NI rate))

Will legislation IR35 affect me?

We would say that most contractors will need to consider the effect of IR35 and if necessary be able to take action avoid it. However it must be stated that not every contractor will be affected by the legislation. If you are caught there are however steps you can take to negate its affect.

Using an umbrella company model against IR35

Contractors inside IR35 typically use an umbrella company as a way of outsourcing of their payroll, with the benefit being that the umbrella company benefactor would take care of all taxation and accountancy issues including any administration, this option is more cost effective than using a limited company structure, with would do little to shield against the effects of IR35.

Most schemes like this require contactors to already have an offer in place from an agent before they can join such a scheme. However the whole process is simple with most contractors being set up by their agent as a client within 24 hrs.

What to expect from an umbrella company:

  • Firstly you will need to tell existing client the name of the umbrella company that you are dealing with. This helps to ensure that any contracts they prepare clearly state the umbrellas company name as the 'contractor'.
  • The umbrella company will be the first to receive the contract by your agent. They will then arrange for it to be signed by their executive before they send it on to you for a counter signature and/or checking.
  • The umbrella company will also need your name, address and bank details in dealing with any credit transfers to your account. They may therefore issue an application form requesting such information.
  • You must send your P45 from your last employer to the umbrella company. If you do not have one then a P46 form will be issued from them so that they can obtain the necessary tax code.
  • Most umbrella companies may ask you to sign their own legally binding document between yourself as a shareholder/ individual employee. Such a contract will outline the terms and conditions in which you agree to work under in regards to the service the umbrella company will provide as well as how you agree to be paid.

What are the advantages of using an umbrella company?

There are several advantages of using an umbrella company including:

  • Such a model saves the time and effort of running a limited company. It is easy and simple to set up, with the contractor completing the timesheets and then forwarding it onto the umbrella company.
  • The contractor can be free from VAT returns, payroll and taxation issues as well as worrying about the company accounts. This means they can concentrate on running their side of the business more effectively knowing any that any payments are being calculated properly.
  • This model is very effective for short term contractors as they do not have to form a company which is expensive.

The clients that PDM Recruitment Consultancy have placed candidates for include:

c-seb c-barclays c-commerz

 c-dz c-hsbc c-zero

“PDM Consultancy are by far one of the best recruiters that I have had the opportunity to deal with over the years. We approached them due to their well-known expertise within the IT sector, and tasked them to find us a Kondor Application Expert. Within 4 days they came back to us with a suitable candidate, who we have since placed and will be extending their contract. The calibre of the candidates that PDM submitted to us were impressive to say the least. We will certainly be using PDM again for our recruitment needs”.

Simon Weir, Banking HR manager, June 2013

 

“PDM have been a pleasure to deal with from start to finish they took to time go understand our recruitment needs and found us a high quality candidate shortly after we supplied them with our brief. We were particularly impressed with their search methods, which were certainly effective”.

Timothy Parvin, hired PDM as a recruiter in October 2013

 

“I was impressed with my consultant flying out to meet and discuss with me our exacting requirements both from a premeditated and practical viewpoint. In particular for such a new business their commitment levels and their dedication to their clients is most impressive. I was equally impressed with the shortlisted candidates they eventually submitted to us. Our company will definitely be using PDM Recruitment Consultancy in the near further, and we look forward to developing a long term relationship with them”.

Jane, Head of personnel, August 2012

 

“Firstly I would like to thank my consultant for all of his knowledge, understanding and the patience he showed with me in meeting our particular staffing needs. His approach was thorough and his in depth understanding of the financial markets made the whole recruitment process effortless. Secondly I would like to thank the whole team at PDM you have been a pleasure to deal, thank you for all of your hard work”.

Gerardo, Director of Finance, January 2013

 

“I’ve had the pleasure of working with PDM Recruitment Consultancy on a number of roles from Finance to IT and have overall been impressed with their levels of service, their professionalism and the way in which they communicated with me at every stage. The knowledge of their consultants has always and continues to impress me”.

Oliver Clement, HR, November 2012

 

“I would like to take the time to thank all of the recruiters at PDM for your expert help in sourcing and placing our Murex Expert position. We were impressed with how efficiently and effectively our candidate was found. You took the time to understand our brief and supplied us with a high quality candidate. We would certainly recommend PDM Recruitment Consultancy for any firm looking to fill their recruitment needs.”

Sarah, hired PDM as a recruiter in 2012  

 

" We are very happy and impressed with the way PDM Recruitment conduct their business and dealings. On hearing about our requirements they flew out to meet us in person and took the time to listen and to provide us with a fresh perspective on the recruitment market, something which other agencies do not provide. We hope this partnership is a long and successful one"

Jessie Bergstrom, Head of Personal, February 2014

 

" Thank you for your professionalism in fulfilling our challenging and very much short notice requirement for 3 BlackRock Specialists to work an international placement for our client. We turned to PDM because we knew your team would deliver on time and within budget yet again!"

 Karin Engel, Head of IT, April 2015