Compliance checks for ATSCo's service provider members

ATSCo members who provide accountancy or umbrella company services to the recruitment industry will have to pass new compulsory compliance checks, which have been devised in consultation with HM Revenue and Customs.

ATSCo, the agency trade body, said that the purpose of the checks is to mitigate the added risk to staffing companies of transacting business with contractor services providers. Following the recent MSC legislation, recruiters can be liable for contractors' unpaid tax and National Insurance in the event debts cannot be recovered from contractor services providers.

The reviews, which will be carried out annually, will check that providers of accountancy and umbrella company services are compliant with tax and employment legislation. Companies which pass the checks will be listed as affiliates on the ATSCo website, to which staffing companies can refer contractors.

Risks

ATSCo said that it has introduced the checks in response to increased focus by the Government on legislation directed at the temporary worker market. The Government recently launched a consultation looking at the rules relating to travel expenses claimed by umbrella company workers, which could result in an additional debt transfer risk for staffing companies.

Marilyn Davidson, Director, ATSCo, said: "The risks of non-compliance for providers of tax and employment related services to contractors has increased significantly, and the introduction of debt transfer rules has heightened the risk for staffing companies transacting business with these suppliers.

"These checks will give staffing companies a significant measure of assurance that service providers in the contractor market are operating in accordance with the law."

The compliance reviews will be carried out by Professional Passport, who provides compliance and risk management solutions to the recruitment industry, on behalf of ATSCo.