RPO Conference SETTING THE STANDARDS Crawford Temple Professional Passport.

RPO ConferenceSETTING THE STANDARDS

Crawford Temple

Professional Passport


Supply Chain Compliance


What is meant by the term ‘compliance’ ?

Who or what defines compliance ?

How to understand the risks ?



Certification or confirmation that processes, procedures and actions meet the

requirements of accepted practices, legislation, prescribed rules and

regulations, specified standards, or the terms of a contract.



Certification or confirmation that processes, procedures and actions the meet the requirements of accepted practices,

legislation, prescribed rules and regulations, specified standards, or the

terms of a contract.


Who or what defines compliance ?

‘The Law’ - Legislation and/or Regulation

Ultimately The Courts

Enforcement


How to understand the risks?

Aligned:RegulatorsGatekeepersEnforcers

Alternative Views

NonCompliant

Courts Determine


Aligned Alternative Views

NonCompliant

Financial, brand and reputational consequences increase in line with risk

Highest Risk

Low Risk


So what are the risks?



• Checks need to be across the whole supply chain including third party suppliers

• Questionnaires not a robust solution

• Agree acceptable risk profile with clients

• In house expertise or work with external compliance experts


What’s in a name?

• Many generic labels are given to intermediaries

• Umbrella

• Pay day by pay day model

• Personal Service Umbrella

• One man umbrella

• None of the names given have been statutorily defined

• What is important are the facts of the arrangement

• HMRC will always consider the actual facts of the arrangements NOT the model/scheme the company says it is operating


HMRC does NOT kite-mark schemes and does NOT provide

generic advice that a ‘scheme’ or ‘model’ is compliant

• Common claims of compliance

• We have leading counsel’s opinion

• HMRC has agreed our model is compliant

• HMRC will not pursue you or your end client for arrears should they arise

• Bold statements by the promoters are no guarantee

Buyer Beware!


Offshore Intermediaries

What is an offshore intermediary?

• This a company which is the employer of a UK worker but who bases themselves outside of the UK and the EEA

What they promise….

• Many of these companies claim that there is no liability for them to pay employer National Insurance – if they have no place of business, presence or residence in the UK there is no obligation on the offshore employer to operate PAYE or pay employers National Insurance Contributions

• These companies also claim that no PAYE/ NICs liability will arise on any of the UK companies in the contractual chain


Offshore Intermediaries

The reality….

• Where the employer is truly offshore HMRC can use the host regulations together with the agency legislation to place unpaid PAYE/NICs charge on the UK employment business

• Alternatively they can use the host regulations to place the charge on the UK end client.



• What checks are you making on the operating structures of workers supplied by third parties?

• What expertise do you have to assess the compliance of providers?

• What guarantees or assurances are you providing to your clients?

• Are you building unknown significant liabilities in to your business?



Positively Different

Independently verifiedcompliant supply chain


Crawford Temple

0118 988 803407881 511345

[email protected]

mailto:[email protected]

mailto:[email protected]

RPO Conference SETTING THE STANDARDS Crawford Temple Professional Passport.

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