ADVANCED PAYROLL COMPLIANCE
ADVANCED PAYROLL COMPLIANCE
We believe that there has never been a more appropriate moment to launch the PCA given the pressures facing the assignment-based workforce, including a proliferation of non-compliant umbrella companies, many of these operate an array of tax-avoidance schemes, which place workers in a position of extreme risk with regards to their gross-to-net earnings and tax affairs. Seduced by the prospect of paying less tax, thousands of workers find themselves subsequently subject to HMRC investigations, heavy penalties and fines, in addition to unwittingly forfeiting many of their statutory employment rights and entitlements.
Due to an absence of meaningful policing by existing trade bodies, the payroll industry remains largely unregulated, with workers at the mercy of unscrupulous providers. The PCA supports the prospect of government regulation to standardise the industry and to create a transparent set of criteria by which umbrella companies have to offer their services, and we believe that the PCA can play an instrumental role in this objective going forward.
It is estimated that there are currently 800,000 workers paid via umbrella companies in the UK, with less than a third administered by payroll providers audited by other trade bodies. The potential for worker exploitation is, therefore, rife, as illustrated by the numerous examples of non-compliant payroll schemes frequently appearing in the media across a myriad of sectors, including construction, education and healthcare. It is the absolute remit of the PCA to identify these rogue providers, whilst highlighting the legitimate endeavours of those payroll companies who comply with employment legislation and treat workers fairly.
We welcome your feedback and support.
