Compliance Services for Agencies and Contractors- Do you want stop worrying over compliance?
BITE Compliance offer a new compliance service since April 2015 for both Agencies and contractors. Each contractor either working through BITE or as a paid up BITE member will use the contractor compliancy portal helping to ensure contracts, working conditions and payments and expenses are all fully compliant. Contractors working through a PAYE supply (umbrella)service have a full RTI and HMRC dispensation for expenses, whilest those working through a PSC are managed to be compliant via a separate accountancy practice and the contractor portal.
Agency Compliance services for PSC’s
BITE have always worked hard at ensuring contractor quality by meeting and providing training and interviewing services for contractors that needed the support.However since the April 2015 Financial Reporting requirements for all intermediaries this quality attention has taken on a new meaning.
BITE now check every Limited company contractor (PSC) to ensure:
1. The company is a current trading registered company in the UK
2.That the contractor is a current company director
3. That the contractor holds a material interest a 5% shareholding or more
4.The company has a current business Bank account and will only accept payments to it.
5.The Company has valid insurances for the period of the contract most importantly P.I. professional Indemnity Insurance
6. The company has appointed a qualified accountancy practice to act on it’s behalf.
7. The contractor and his PSC are willing to and using the BITE Contractor compliance portal understanding whether they are working inside or outside of IR35.
8. The contractors operating through a PSC are referenced and quality checked.
BITE now provide for agencies:
1. An automated HMRC quarterly report for each contractor supplied by BITE where requested showing all information specified under the HMRC Intermediary reporting requirement
2.A complete HMRC Reporting and Compliance service for agents where they can out source the whole compliance service to BITE. this will include the quality service of referencing combined with contractor compliance and the assessment of IR35 and the subsequent deduction and payment of PAYE TAX and N.I. falling due.
3. A full indemnity against HMRC reporting requirements should any agency take on our full outsourced compliance service.
4.Full indemnity against any tax or PAYE liability whether through IR35 PSC engagement or PAYE Supply as a result of engaging one of our five star contractors.
If you wish to know more about the Financial Intermediaries Reporting requirements April 2015 then see the link : financial reporting requirements
Public sector IR35 Compliancy for PSC’s and agencies
The New legislation for April 2017 makes the intermediary closed to the PSC responsible in the public sector for determining or confirming with the client that the contractor operating through a PSC is either outside of IR35 or caught within IR35 when they must deduct PAYE payments at gross level before paying the contractor (with the exception of 5%). The agency will be held liable and as well as this there is a considerable admin burden.
BITE Contractors limited operating as an employment business with a specialism in Limited company contractor compliancy will handle the responsibility by becoming the closest intermediary. The agency pays BITE Contractors who pays the PSC after a complete contract and working conditions IR35 assessment DEDUCTING PAYE if due under IR35.
The advantages to the agency are:
- No IR35 payment liability
- no PAYE Payroll administration
- Only one payment to make to one supplier
- happy contractors charged a realistic fixed fee membership fee for a compliancy and payment service plus a range of membership benefits
As a clear simple option Public sector contractors can be offered BITE’s umbrella service or a consultancy position as a PAYE Consultant and their limited company “mothballed” to ensure the client is satisfied in an environment where they are unwilling to carry out the HMRC on -line tests for IR35. BITE will then offer the contractor some additional benefits to off set the shock of IR35 and the new legislation.
In April 2020 this service will be extended into the Private sector!