Some recruitment consultants may have found themselves receiving a bill from HMRC over the last couple of weeks regarding unpaid tax on incentive payments.
The FCSA have said that it seems that the bill from HMRC is due to consultants receiving payment from one or more umbrellas with no tax being paid on this particular income.
If staff accept any benefits of kind at all from an umbrella company or accountancy provider, this should be treated as a taxable income and if it is not declared you could very well face the risk of breaching tax evasion rules.
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I want to be a contractorJulia Kermode, FCSA Chief Executive, explained further, “Those who have been targeted so far are likely to be just the tip of the iceberg, which should be a concern for any recruitment agencies reading this.
“In order to protect supply chain partners from an unexpected tax bill, we require FCSA Accredited Members to ensure that appropriate tax is paid on any incentives paid to recruitment businesses or their staff.”
She added, “This is yet another reason why an increasing number of agencies require FCSA accreditation for their PSLs”
To find out more about contracting please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.
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