FOIA request responses unveiled

The Guild and its clients often encounter “payments” companies who purport to give customers all sorts of seemingly wonderful benefits, such as:

  • paying operatives on a gross basis
  • unlimited expense claims for the operatives
  • labour sourcing and payroll wrapped into one for the customer
  • indemnification (despite the supplier’s coffers can’t back it up)
  • sending and receiving monies offshore

Companies that offer the sort of arrangements above are banking on never being caught for substantial compliance failures – on the basis that they see the current compliance environment in the UK as loose and breezy.

The reality of the situation, however, is very different.

The Guild, via its Legal Department, recently submitted two requests pursuant to the Freedom of Information Act 2000 to HM Revenue & Customs and the Tribunals Service respectively. The Guild asked:

  1. How many claims in which the Agency Workers Regulations 2010 (“AWR”) is a material issue are currently in the Employment Tribunal system?
  2. How many claims in which Managed Service Company legislation* is a material issue are currently being pursued by HM Revenue & Customs against defendant companies and individuals?

* You may be aware that Managed Service Company legislation gives the government the right to go after directors of companies who are deemed to have used arrangements to deny the Exchequer income tax and/or national insurance – scary stuff!

The answers returned showed that there are 540 claims involving the AWR and a whopping 802 cases involving Managed Service Company legislation.

In light of the enormous number of cases, trading conditions are not quite as laissez-faire as some suppliers are counting on. When things inevitably go wrong for those suppliers sailing close to the wind, it is their clients who will be investigated by the relevant bodies and who will ultimately pay a heavy price.

At The Guild, compliance is the paramount concern. Together with the highest standards of service, clients are guaranteed peace of mind and the freedom to get on with running their businesses. In addition, all clients are fully indemnified. This is why The Guild considers itself to be the leading provider in its field.

For more information, please contact The Guild on 0208 181 9100, option 3.

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