Sunday, June 16 2024

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SafeRec Certified Umbrella Companies: Why over 3500 Agencies Are Already Converted.

Since its inception in June 2023, the SafeRec Certification for umbrella companies has seen a meteoric rise in popularity, becoming a cornerstone for recruitment agencies and managed service providers in their operations. The real-time auditing of payments made by Umbrella Companies, monthly reconciliations against RTIs, and checks with HMRC tax accounts have set a new benchmark in compliance and transparency. This article delves into the essence of SafeRec Certification, its rigorous standards, and why over 3500 recruitment agencies have already pivoted to work with SafeRec Certified Umbrella Companies.

What is the SafeRec Certification?

The SafeRec Certification was born out of a fundamental belief that all participants in the contingent labour supply chain deserve the highest level of assurance and proof that workers are paid compliantly. It aims to mitigate risks associated with tax liabilities for recruitment agencies, managed service providers, end clients, and workers by adhering to five fundamental principles:

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Principle 1 | Real-time Auditing: Real-time forensic audits of payments to ensure payroll integrity and compliance, thereby building trust among all stakeholders.

Principle 2 | Auditing at Source: Leverages advanced API technology for direct payroll data access, eliminating data manipulation risks by the auditing company and ensuring the authenticity and accuracy of audit findings.

Principle 3 | Verification with HMRC Data: Cross-referencing audited data with RTIs sent to HMRC and monthly checks of HMRC tax accounts to ensure taxes have been accurately disclosed and paid to HMRC. 

Principle 4 | Ongoing Review of Contracts, Procedures, and Policies: Ongoing assessment to ensure that the certified company’s operations are aligned with current laws and best practices (conducted by WTT Legal, a regulated law firm), fostering a culture of continuous compliance and adaptability.

Principle 5 | Transparency Across the Supply Chain: Promotes clear visibility of the auditing process and the auditing results for all involved (workers and agencies/MSPs/End hirers) by sending comprehensive audit reports, fostering an environment of trust throughout the supply chain.

This comprehensive approach not only secures compliance with tax laws but also builds a foundation of trust and integrity across the entire contingent labour supply chain, bringing a level of compliance unheard of.

What it Involves for Recruitment Agencies

For recruitment agencies, the monthly audit reports received for SafeRec Certified Umbrella Companies are indispensable. These reports detail the audits conducted on all their workers, ensuring taxes are accurately calculated and reconciled with RTI and the HMRC tax account of the Umbrella. 

This process is the only way for agencies to protect their company under the three legislations that bring them liabilities when they engage with Umbrella Companies:

  • The Agency Legislation
  • The Offshore Intermediaries Legislation
  • The Criminal Finances Act

Engaging with SafeRec Certified Umbrella Companies ensures that workers are paid through PAYE, not directly into their Personal Service Company (PSC), and confirms the UK-based operation of the umbrella company, ensuring taxes are paid within the UK. This level of diligence is crucial in preventing involvement in schemes like the Mini Umbrella Company model, which poses significant legal and financial risks for agencies.

The Growth that Sees More Agencies Engaging with Umbrella Companies

The compelling evidence provided by SafeRec audit reports has led to over 3500 recruitment agencies receiving confirmation that taxes are accurately calculated, disclosed, and paid to HMRC for their workers engaged via certified umbrellas. This assures agencies, their clients, and workers of no tax liability. 

The fact that there is no cost to the recruitment agency when engaging with Certified Umbrellas makes it an obvious proposition, drastically simplifying their Preferred Supplier List (PSL) strategy in terms of compliance.

When choosing SafeRec Certified Umbrella Companies, agencies are not just making a choice for compliance; they are taking a significant step towards protecting their business. The assurance it provides makes it an undeniable choice for agencies aiming to safeguard their operations against tax liabilities and compliance risks.

The Certification has revolutionised how recruitment agencies engage with umbrella companies. Its comprehensive auditing process, emphasis on real-time compliance, and the subsequent monthly reporting mechanism ensure that agencies, their clients, and workers operate within a framework of trust, transparency, and legal compliance. 

With more and more agencies pivoting to Certified Umbrella Companies each week, the movement towards SafeRec Certified Umbrella Companies is not just a trend but a shift towards a more secure and compliant future in the recruitment industry.

Take the Next Step: Embrace Compliance and Innovation

As we navigate through the evolving landscape of umbrella compliance in 2024, it’s paramount for recruitment agencies to stay ahead of the curve. The first Umbrella Certification has already marked a significant milestone; however, the journey doesn’t stop here. With the continuous changes in umbrella compliance, it’s critical to remain proactive and informed about the latest developments in the market. 

What next step should your agency take?

  • Connect with Certified Umbrella Companies: Leveraging the certified platform allows you to contact umbrella companies that meet the highest standards of compliance and transparency directly. This streamlines your operations and fortifies your compliance posture, ensuring your agency, clients, and the contractors you represent are protected against potential tax liabilities.

Link >>> List of SafeRec Certified Umbrella Companies

  • Book Demos: Understanding the intricacies of the Umbrella Certification and the suite of compliance products companies like SafeRec offer is crucial. By booking a demo, you’ll learn how these solutions work, what they mean for your agency, and how they can enhance your Preferred Supplier List (PSL) compliance strategy. This knowledge empowers you to make informed decisions and leverage SafeRec’s tools for optimal compliance and efficiency.

Link >>> Book a demo with SafeRec

In a world where compliance is not just a requirement but a cornerstone of trust and reliability, taking proactive steps towards embracing the latest in compliance technology and standards is non-negotiable. SafeRec Certified Umbrella Companies offer a pathway to meeting and exceeding these standards, ensuring your agency, your clients, and the workers you represent are safeguarded against the complexities of tax laws and compliance requirements.

Don’t let your agency fall behind in the ever-changing landscape of umbrella compliance. Get on SafeRec, book a demo, and explore the new standards in the market. This is your opportunity to lead your agency into a future where compliance, transparency, and efficiency are not just goals but realities.

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SafeRec is a Technology and Consultancy Company, Partners with the REC and APSCo, that offers automated solutions to agencies to deal efficiently with their Umbrella Compliance. Whether our client is an Agency, a Managed Vendor or an End-Client/hirer, our fully automated AI-Driven Software ensures Payroll Compliance for the entire supply chain. From Umbrella to Agency PAYE, all workers’ pay is audited each week.

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