Contractors are becoming more risk averse as they see HMRC compliance activity increase. For example, historically, contractors were willing to take a chance on offshore schemes on the basis that they were unlikely to be challenged by HMRC.
Recently, HMRC has managed to force disclosure of contractor names from scheme operators in places like the Isle of Man. Thousands of letters have been issued to contractors, giving them an opportunity to settle unpaid UK tax before enforcement action is taken.
This has led to a general switch to onshore umbrellas or PSCs, not just from those contacted by HMRC but other contractors who realise that the net is closing around them. Recruitment agencies have also been forced to look more carefully at how contractors are paid, since they are potentially at risk if their contractors use these schemes.
At PayStream we provide a wide breadth of services designed to help, advise and support our agencies. Our in-house expert legal and compliance team ensures that our agencies receive the very best guidance on current, new and changing legislation. So if you're looking for a provider that you can count on, look no further than PayStream.