Recruitment firms at risk of penalties from lack of compliance enforcement

(2 minutes to read)

‘Delivered correctly, compliance can have an entirely positive influence and even be used as a sales tool’, says 6CATSPRO.

Latest data shows that many recruitment firms could find themselves facing penalties for not following compliance procedures.

The 6CATSPRO research revealed that there are common factors which are potentially exposing firms operating in and out of the UK to a number of risks, including: compliance functions being viewed as ‘business inhibitors’, inconsistent information available and the lack of ‘top down’ enforcement of policies within these organisations.

This combination of factors is leading to internal compliance functions being undermined, limiting their ability to protect the business.

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Jon Clarke, Commercial Compliance Director, at 6CATSPRO explained, “There’s no doubt that compliance is becoming stricter across the globe, with the likes of the Criminal Finances Act 2017 and the Common Reporting Standard making contractor management much more complex. In such an intricate environment, any compliance function should be considered a valuable tool, but it appears this often isn’t the case, much to the detriment of those firms in question. As a case in point, we still regularly review contracts from recruitment businesses using UK model documents full of references to IR35, AWR and compliance checks but with no reference to either the host country or more generic international considerations, creating potentially expensive exposure to their business brand, candidates and end clients.”

“Rules in the UK are very strict as we all know and, surprisingly, it seems that on occasion recruitment businesses working internationally can fall foul of thinking that because the services are being delivered outside of the UK, where they are registered and operate from, that they are somehow sheltered from compliance risks. As a result, rather than ramping up their compliance, they relax it.”

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

Why Dolan Accountancy?

Dolan Accountancy was set up by Simon J Dolan, the man behind the well-known brand SJD Accountancy. With over 25 years experience in the contracting marketing, Dolan Accountancy has the heritage, reputation and credibility you can trust. Working closely with our sister company, ContractorUmbrella, it means we can offer one low cost, fixed fee package at £95 + VAT per month. This gives you the flexibility of using both our Limited Company Accountancy Services and our award winning Umbrella Service, for one inclusive cost. 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 ContractorUmbrella – With changes in Public Sector IR35 Legislation 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, ContractorUmbrella.
  • 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 – The founder behind the multi award winning FreeAgent platform was one of Simon’s first clients, therefore it only seems fitting that 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.

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 795100 or email sophie.lewis@dolanaccountancy.com or jaime.thorpe@dolanaccountancy.com.

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