If you have a concern about any of our Approved Providers please use the form to report this to us.
We are likely to come back and ask you, in the first instance, to supply any supporting documentation that you have supporting the concern raised.
We can confirm that none of our Approved Providers should be operating any of the following arrangements:
- Elective Deduction Model
Where workers are 'self-employed' and elect to pay PAYE taxes. This arrangement is often used for low paid workers and whilst there are many variations common features would include a failure to pay holiday pay, ignoring NMW requirements, claiming of expenses that would otherwise be prevented.
- Umbrella Sub-Contracting to PSC’s
Workers engaged through the umbrella are on an employment contract will PAYE applied to their earnings. We cannot approve any provider who uses the umbrella to sub-contract to PSCs and operate as a ‘Fee Payer’ within the terms defined through the Off-Payroll Working Legislation.
- Pay Day by Pay Day
Was common at one stage but now seems less so. In this arrangement expenses were offset for tax relief which often resulted in workers receiving less than NMW.
- Mini Umbrella
Contrived arrangements to access the employers NI relief and, in some cases, VAT FRS.
- Arrangements with 'Loans'
Seeking to avoid tax on income by categorising some of the income as a loan, annuity, shares, a capital advance involving mutual, joint or co-ownership, or a payment derived from a revolving line of credit facility, or some other non-taxable form. We still see these offered with false promises of compliance.
- Any arrangement that includes an element of pay from offshore
This is an area that regularly has new arrangements emerging with false claims of compliance.
- Umbrella companies relying on the Nurses Agency VAT Concession
HMRC has made it clear to Professional Passport that this concession is not available to umbrella providers.