Is it time to rip up the PSL’s when looking for accountancy solutions in the logistics sector?

With all of the changes that are facing PSC’s (and in particular small limited companies), it might be time to take a long hard look at your ‘Preferred Supplier List’ or PSL when choosing an accountancy solution for your Agency “workforce”. 
Well here are three reasons why not use a “PSL” when introducing your limited company Agency HGV drivers to umbrella and accounting suppliers: 
1. HMRC are targeting the larger accounting and umbrella companies who peddle aggressive tax avoidance schemes. Under Claw-back provisions, If the third-party provider of accountancy services is found to be a Managed Service Company.. then claw-back of potential lost revenue can be forced upon the Agency by HMRC…. this is often overlooked in the PQQ stage.

2. A PSL narrows done the quality and replaces it with price….often at the expense of good service delivery….. this is obviously not the best idea for protecting your principal asset – the HGV Driver……….why would you place the welfare of your most important revenue generating assets with organisations that don’t care about the Drivers and put the pursuit of profit first and foremost????

3. By overlooking smaller accountancy firms and reducing the field to a hand-full of overhead burdened, monolithic, sales led accounting organisations, where your assets are dealt with by quite junior and often inexperienced book-keepers (at best), you really run the risk of eventually losing your better HGV drivers…..

Affirm Accountancy prides itself on providing high-quality, independent accounting services to all of its HGV driver clients……. after all, if we are looking after our HGV Drivers – do you really know who is looking after your Drivers?
Please, if you are serious about resting your better drivers, and you want to retain these Drivers – you should ask the current incumbents of your PSL the following key questions often omitted from a PQQ: 
A) If they are holding Drivers’ monies, what do they do with the interest generated on the client account? 

B) how much money has been returned to drivers who have moved on? 

C) Do they control the bank accounts of the Drivers’ limited company in a composite linked system of bank accounts?
If the answers to the above questions are – “yes: we generate a small amount of interest, and although every driver might be entitled to a portion of this interest seldom do we actually credit any Driver with any interest we hold for him or her” or for b) so If it is “no we never return a driver any of his monies as it is often swallowed up by charges and fees”, and finally, for c) “yes we pay the drivers’ weekly monies into a limited company bank account bearing the company name (but it is agreed the Driver does not have access to this account)….” 
……Then there is a very high chance you are using a Managed Service Company……under guidance note HMRC ESM 3515 to 3520.  
https://www.gov.uk/hmrc-internal-manuals/employment-status-manual/esm3515 
There is a genuine possibility that under the transfer of debt provisions, as the last man standing – you the agency, could pick up the tab for the HMRC’s potentially lost revenue……..so the answer is to use professionally vetted, independent HGV drivers who know the rules of engagement, (and have their own limited company bank accounts, for which only they can control and public liability insurance, again in their own company name; as opposed to spoon fed, zombies who don’t have a clue about their current working arrangements and know even less about what is happening with their accounting.
Then there is always the “spare tyre” concept- why do you carry a spare tyre in the boot when I have four perfectly goods ones on my PSL….. well precisely……
If you want to discuss any aspect of this blog with us, feel free to call us on 01204 573555, we care passionately about the welfare of every one of our Driver clients…. they could easily be yours too!!! 
Neil Hooton

Affirm Accountancy Services Limited

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s