The use of umbrella companies has only increased since the last round of legislative updates to IR35 – but this has led to an increase in competition with some detrimental effects, and there are still some concerning regularities where HRMC is publishing the latest use of a tax avoidance scheme.
At PRG, the financial security of our candidates is one of our topmost priorities. We work rigidly to help ensure that our candidates will be cared for under strict and monitored FCSA-accredited umbrella companies to mitigate the risks of financial turbulence.
The FCSA (Freelancer and Contractor Services Association) is a UK-based professional membership body that represents service providers in the flexible workforce sector. Acquiring an FCSA accreditation requires passing strict entry assessments (and ongoing audits) and is therefore a great indicator that your umbrella company cares about your current and future needs. FCSA accredited members provide services, advice, and employment to the highest level of professional and ethical standards in the UK.
Currently, we are working towards having a preferred supplier list of only FCSA registered umbrella companies that are willing to offer the best service and price possible for those who operate through us. Here are five reasons why it’s important to consider attaining an FCSA certification and the dangers of choosing not to do so:
- Compliance and Accountability
FCSA registered companies are committed to adhering to the highest standards of compliance. They ensure that they operate within the legal and regulatory framework, reducing the risk of non-compliance for both contractors and hirers. Non-compliant companies may put contractors and hirers at risk of legal and tax complications, financial penalties, and reputational damage.
- Protection for Contractors
FCSA members typically provide comprehensive insurance and other protections for contractors, which can include professional indemnity and liability insurance. This safeguards contractors’ interests and financial security.
- Financial Transparency
Non-compliant or financially unstable companies may not adequately protect contractors’ income or provide payment security. FCSA registered companies, however, undergo regular financial audits, providing transparency and assurance to both contractors and hirers regarding the company’s financial stability and the handling of finances. Using an FCSA accredited umbrella company will help you stay clear of distasteful tax avoidance schemes.
- Expertise and Support
FCSA members have access to a wealth of knowledge and expertise in the flexible workforce sector. They can provide valuable guidance and support to contractors and hirers, ensuring they make informed decisions. Furthermore, engaging with non-compliant or unethical companies has the potential to harm a hirer’s reputation.
- Industry Best Practices
FCSA registered companies follow industry best practices in areas like payroll, taxation, and contractual arrangements. This minimizes the risk of disputes, tax liabilities, or financial penalties. Companies that are not FCSA registered may lack the necessary expertise to navigate complex employment and tax regulations
Not choosing to be covered by an FCSA certification may expose you to legal, financial, and reputational risks, as well as the potential for unfair employment practices. As an umbrella company, it is essential to consider becoming credited to mitigate these dangers. FCSA registered companies can help ensure compliance and financial security, leading to a more stable, and safe business.
Contact us today to discuss how we can support your hiring needs and help position your business for success in this evolving market landscape