Following on from legislative changed in April 2016, it is now more important than ever for a recruitment company to operate a Preferred Supplier List.
April brought us changes in the Finance Act, with most impact in relation to Expenses. This include clause 289A Exemption for paid or reimbursed expenses. These are summarised as follows:
(5) “Relevant salary sacrifice arrangements”, in relation to an employee to whom an amount is paid or reimbursed in respect of expenses, means arrangements (whenever made, whether before or after the employment began) under which —
(a) the employee gives up the right to receive an amount of general earnings or specific employment income in return for the payment or reimbursement, or
(b) the amount of other general earnings or specific employment income received by the employee depends on the amount of the payment or reimbursement.
Why have a PSL?
- Supply Chain Compliance – it is important to be able to assure your clients of the compliance of your business partners
- Suitability for a worker – it is important to work with a company that properly considers the options available to a worker and that they are consistent of the views of HMRC and beneficial to the worker.
- Support with administration and reporting – HMRC’s Intermediary Reporting and other administrative requirements can be a burden to a recruitment company. Working with a business partner who can provide this information and support will save time and costs to the recruitment company.
Green Lantern undertakes everything possible to provide peace of mind to its clients, including regular compliance audits by Professional Passport, who engage directly and regularly with HMRC.
If you are unsure as to whether your partners are compliant, give us a call on 02071642116. We can work with you to ensure that you operate, both on a Preferred and Approved basis, with suppliers who provide comfort to your business.