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Making digital Right to Work (RTW) screening permanent has been welcomed, however, the APSCo has called on the Home Office to address flaws in the system.

Their concerns include:

  • A lack of clarity around standardised rates or fee caps to prevent SME recruiters from being financially burdened.
  • Limited timeframes to allow for an appropriate preferred supplier selection process.
  • The potential for unnecessary duplication of checks.

Tania Bowers, Global Public Policy Director at APSCo, commented, “The move to digital identity checks is something we’ve called for and welcomed when it was first announced. However, when we drill down into the details there are issues that have the potential to negatively impact staffing companies. While there will understandably be costs associated with digital checks, we are concerned that SME staffing firms will be exposed to high fees given that the decision around certified provider usages is often driven by the end-user’s outsourcing provider.

“This is an additional cost of supply, leading to higher costs for end-users or lower rates for workers, disincentivising the best talent to apply for positions. We have asked that the Home Office introduce low standard rates or caps on fees and other suitable limitations on the IDVT certified providers to prevent staffing firms being unnecessarily financially impacted.

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Bowers added, “The cost is not the only challenge, however. End-users, outsourcing providers and public sector frameworks generally require the digital RTW to be carried out by the party holding the contract with them, rather than the worker. This means that the process could lead to an unnecessary duplication in checks. It would be simpler and more cost effective for private and public sector clients to recognise in their contracts that the party with the contract with the worker is the correct entity to conduct the RTW digital check.

“Given that applications for certification only opened on 17th January we also anticipate time will be short to run an appropriate preferred supplier selection process to establish new relationships with IDVT certified providers ahead of the new rules coming into force. There may be a problematic period when firms can no longer use the Covid checking processes, but won’t be ready to use a digital solution. This will increase time to hire at a time when skills are already in short supply and has the potential to exclude candidates who aren’t able to complete a face-to-face RTW check. We have written to the Minister for Justice and Tackling Illegal Migration, calling on the Home Office to address these issues raised and to temporarily extend the Covid-19 RTW check, providing an overlap with the digitalised process, to allow time for businesses to set up their arrangements with certified providers.”

To find out more about contracting please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.

Why Thousands of Contractors Choose Dolan Accountancy

With over 25 years experience in contractor accountancy helping thousands of contractors, freelancers and the self employed, Dolan Accountancy has the specialist skills, reputation and credibility you can trust.

Working closely with our sister company, Contractor Umbrella, it means we can offer one low cost, fixed fee package at £125 + VAT. This gives you the flexibility of using both our Limited Company Accountancy Services and our award winning Umbrella Service, for one inclusive cost.

If you’d like to find out more about how Dolan Accountancy can help you and your business, please give us a call on 01442 795 100 or email sophie.lewis@dolanaccountancy.com or jaime.thorpe@dolanaccountancy.com.

We don’t believe in tiered packages or hidden extra fees, instead we aim to give you everything you need, including:

  • Free Company Formation – This is where it all begins. Once you have decided on an available name, we will form your company free of charge (if using our accountancy services) and it will be ready for you to use in as little as three hours
  • Free use of Contractor Umbrella – With IR35 Legislation changes we understand that sometimes you are required to contract via an umbrella company. We will keep your limited company ticking over, while you work margin free via our sister company, Contractor Umbrella
  • A Dedicated Accountant – Your accountant will be there for any company or personal tax advice that you require. We will never outsource work, even to internal teams
  • Free Access to FreeAgent – We offer all of our clients access to FreeAgent, free of charge
  • Free Business Banking – We have decided to waive our commission so our clients can use Tide free of charge for the first year
  • Unlimited IR35 Status Reviews – We will review all of your contracts for IR35 purposes and provide you with our professional opinion as to its status
  • Free Registered and Director’s Service Office Address – Sometimes you just don’t want your home address on display at Companies House. When you sign up to our accountancy services, we will offer the use of our address as an alternative
  • Your Business and Personal Taxation Needs – This includes Company Accounts, Director’s Personal Tax Return, VAT Returns, Payroll, Corporation Tax and Dividend advice, to name just a few
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