The TAAR 2014 (Targetted Anti – Avoidance Rules) , were brought into stop intermediaries manipulating the Agencies legislation and setting up their employees as ‘false-employment’ private service companies. Too many workers in the logistics sector were taken ‘off-payroll’ by setting up thousands of small limited companies and therefore avoid paying billions of pounds of NIC.
However, anyone who has run a small limited company will testify – ” it ain’t plain sailing”….. often small businesses fail as a result of poor management decisions leading to adverse cash flows.
Today’s blog will assist the manager of the agency worker in choosing the right calibre of compliant workforce. There are four key points to make.
1. Choose your Agency Workforce from the widest net possible, performing basic due diligence on the work experiences and how they have structured their business affairs. Ask to see their “day-book” or “diaries” as the higher calibre drivers will record must important events of a days work in a journal.
2. Don’t be tied down with your accountancy and payroll providers on your PSL. Often larger accountants put quantity over quality. Smaller accountants, who understand the logistics business invariably have smarter, higher calibre drivers on their books.
3. Engage only 100% compliant drivers. Okay. So what is a 100% compliant driver?
A) Holds upto date Driver CPC;
b) Operates through a limited company with no taxation or filing liabilities;
c) Uses a limited company bank account, which is controlled by the driver;
d) Operates a PAYE scheme correctly, and understands whether IR35 applies to a contract through an Agency;
e) Is trading in a fit and proper manner with Public Liability Insurance in place; and
f) Has full control of the company’s affairs….. ie the Driver decides for whom they work for and how much is received.
4. Remember the maxim. It is always about the drivers…drivers….. drivers. Protect them and look after their interests. A good agency driver will is worth his weight in gold and probably fewer headaches than a poorer agency driver.
We are currently rolling out the DriverPlus Assured Driver Kite-mark scheme. -All of our clients are quality, independent driver PSC’s and to be inducted into the scheme not only demonstrates an outstanding level of professionalism but also a very high degree of compliance, and will certainly make great Agency driver’s for your agency.