In May 2025, payroll supplier Core Finance Management was accredited by the Payroll Compliance Authority (PCA), having successfully completed a forensic assurance audit.

We have taken the opportunity to speak with Core co-founder and Head of Sales Lauren Baker, to find out more about the organisation and its ethos, why accreditation matters, and her thoughts on upcoming umbrella sector regulation.

What is the back story for Core Finance Management?

"Core Finance Management was founded in 2017. I previously worked for an umbrella company and when the owner retired, I teamed up with two of my clients at the time and together we set up Core.

"IR35 is integral to our business model. We carry out IR35 assessments for clients and this led to us focusing our payroll services in sectors that are involved with IR35, primarily the healthcare and construction sectors, although we're not restricted to these.

"The origin of our name, 'Core', comes from us being at the core of our clients' operations as they grow and that we, as the payroll supplier, will grow with them. For this reason, most of our clients are smaller operations, around 5-10 people, but we also work with a number of larger companies that have upwards of 100 workers on their payroll.

"We operate on an approximately 50/50 split working with recruitment firms and directly with end clients, which is a good balance for us. We're mindful not to put all our eggs in one basket but are also careful to remain specialist."

What makes Core stand out from other payroll suppliers?

"Contractors really are at the centre of what we do and giving them the best deal is important to us. This is why all our workers are on an overarching contract with us. This means they have a single, continuous employment relationship with Core without interruption of rights and benefits when they move from one contract to another.

"They are protected by professional indemnity insurance and access to employment benefits including an Employee Assistance program, so they have access to GPs out of hours and lots of other perks. Even as we grow, we are mindful of remaining specialist and keeping contractors at the heart of our business. We will continue to offer attractive rates and a meaningful benefits package, including a healthcare package, gym memberships, a GP service, and more besides. Benefits packages are something that many contractors go without, but we don't believe this is fair.

"We also pride ourselves on being really competitive in our fees. Whilst of course we need to remain viable, we decided right from the start that part of our business model was to keep a lower fee so that when our workers move to another contract, they take us with them. We believe that if you look after the contractor, they tend to be loyal in return. We're open and honest and our fee starts from just £12.50, which is a very competitive rate."

What makes you specialist in your key sectors?

"As a company, we have earned gross payment status for CIS (Construction Industry Scheme), so we are able to act as a main contractor in the construction industry. This means that we can invoice for 100% of the money and pay the worker, minus their CIS taxes.

"Compliance is our key focus. We don't operate by just shoehorning labourers, we can assess their individual compliance within the construction market and offer them the right solutions for them, whether that is the CIS or umbrella model. Our services in this sector include professional indemnity insurance and access to employment benefits, as you would have under the umbrella model.
 
"We support the healthcare sector because of our expertise in IR35 assessments. We have a long history of carrying out IR35 assessments and these clients typically use our umbrella or our PEO (Professional Employment Organisations) model, so we can offer both payroll models in a fully compliant way, our contractors don't need to be ushered into one boat."

Why did you seek accreditation with the PCA?

"We are in a period of growth to expand our offering and compete with bigger players in the market. We're bringing in more people to support this strategy and are currently strengthening our compliance, payroll and management teams, as well as building up our sales team.

"As we grow, the number of contractors we look after grows, and we need to make sure that we have the right process in place to best serve every single person. Even with the best intentions, compliance can slip when you scale. We want to make sure that doesn't happen, we to be accountable and checked by an independent body.

"The rigorous testing that we had to go through to become accredited by the PCA proves that we know what we're doing, that we're doing it right, and also that we care about the workers we look after. The fact that the audit is carried out by respected global accountancy firm BDO brings with it added meaning and credibility, and we're thrilled to have achieved accreditation."

How do you feel about upcoming umbrella sector regulation?

"We welcome regulation, which should level the playing field. We have been undercut and lost out on countless deals to competitors that have deliberately not paid the correct taxes and therefore been able to offer more attractive rates to contractors.

"But it's high risk for contractors and many don't understand their tax obligations. On many occasions over the years, I have had to explain the legislation to contractors who have genuinely believed that they don't need to pay employer National Insurance Contributions. I've had to show that we were not trying to deduct more than we should be but making sure that their correct taxes were paid so that they don't get a knock from HMRC.

"We're ready to adjust any of our systems to remain compliant with regulations as details emerge. Our compliance team has been attending industry meetings to make sure we're aware of what needs to be done and will be fully prepared well ahead of any changes being introduced."

About accreditation with the PCA

The PCA audit, undertaken and administered by global accounting firm BDO, comprises more than 150 elements and is designed to provide a comprehensive overview of a payroll company's organisational structure, operational procedures and financial processes to ensure that they all comply with current UK employment and tax legislation.

For Core Finance Management, this included scrutiny and analysis of its three payroll models, namely Umbrella, CIS (Construction Industry Scheme), and PEO (Professional Employment Organisations).

By seeking membership with the PCA, the team at Core have also committed to regular and ongoing checks to demonstrate ongoing compliance. This commitment sets them apart as a provider in the outsourced payroll industry.