IMPORTANT NOTICE OF IMPERETIVE IMPORTANCE Amid the recent BBC 5 Live investigation into offshore umbrella firm ISS, and the collateral as a fallout in the industry, we are pleased to offer you a safe and legal alternative. Based in London, Payroll Village is an absolutely onshore umbrella company using a system endorsed by Government to ensure contractors and temporary staff receive the benefits of not avoiding tax. If you or any of your candidates currently work with an offshore umbrella firm, we suggest you immediately subscribe to our services to ensure that your payroll operations are legitimate and fall within HMRCs legislation. Under HMRCs Transfer of Debt clause offshore firms are able to deflect responsibility to the concerned agency; this will make recruitment agencies that have business with offshore umbrella firms liable to cover the candidates’ NI contribution deficit. This has been confirmed by HMRC under paragraph 5 of their Managed Service Companies current legislation guidance article here: HMRC is aware of a number of offshore arrangements providing the services of workers to UK clients which claim to be outside Chapter 9 ITEPA. Such arrangements may be outside the legislation. However, irrespective of the claims made by the Service Providers, if any of these arrangements fall within Chapter 9 and there is subsequently an irrecoverable PAYE/National Insurance debt, HMRC will consider the transfer of debt provisions. Under paragraph 4 of the Employees Guidance article regarding RA or DCC agreement, HMRC confirms that one’s geographical location bears neither relevance nor justification to avoiding ERS NI contributions. This can be viewed in full here: An exception to the general rule concerns posted workers. The employer and employee remain liable for Class 1 NIC where the employee:
is employed in the UK; and posted by that employer to work in another RA or DCC country; and the posting is for a period not exceeding the maximum posting period allowed by the terms of the RA or DCC (the maximum period of posting will depend on the RA country)
We are here to help and will consider your corporate circumstances should you wish to accept our offer of assistance. You can get in touch using the contact details in the accompanying email where we will endeavour to meet your financial requirements during this tough time.
Mr Jamie Flarry MCIPP Payroll Manager
Published on Nov 7, 2012
Published on Nov 7, 2012
Amid the recent BBC 5 Live investigation into offshore umbrella firm ISS, and the collateral as a fallout in the industry, we are pleased to...