So, here I get an email from the agency out of the blue with a subject 'PSC and Umbrella Due Diligence Check List Jan 2015'.
So far so good. And then:
Coming to their checklist, they want to know how their contractors work.
Under each category, they ask some interesting questions like whether you are a shareholder of Umbrella company, evidence of payments i.e. payslips, and a load of other tripe.
And then finally this:
Now the questions :
1. Any other agencies sending out similar Due diligence checks to their contractors?
2. Before I call their bluff, is this something really to be taken seriously? Remember, the contractors would certainly have submitted information that is important for the agency to produce a legal contract. I certainly did. Why again should one submit this information along with other none-of-the-agency's-business information?
FLC
It is our policy only to engage with individuals and organisations that operate in accordance with the law, in particular tax and National Insurance legislation. As part of this policy we require you, on behalf of the company (or other entity) through which you supply your services, to complete and return the checklist set out below.
Asking each limited company contractor to complete a checklist helps ensure that we are not exposing ourselves or our clients to the risk of debt transfer under MSC Legislation and/or under the new Intermediaries Legislation. The link below provides further information on this legislation:
https://www.gov.uk/government/public...g-requirements
As a staffing company we are not involved in any assessment of IR35 status or suitability for an assignment falling outside IR35. If you own and run your own personal service company this is a matter for you to determine and, where necessary, seek independent legal advice on.
Asking each limited company contractor to complete a checklist helps ensure that we are not exposing ourselves or our clients to the risk of debt transfer under MSC Legislation and/or under the new Intermediaries Legislation. The link below provides further information on this legislation:
https://www.gov.uk/government/public...g-requirements
As a staffing company we are not involved in any assessment of IR35 status or suitability for an assignment falling outside IR35. If you own and run your own personal service company this is a matter for you to determine and, where necessary, seek independent legal advice on.
If you work through your own personal service company which you control and direct ("PSC") the information you provide in response to this checklist also gives you the opportunity to confirm and evidence to us that you have chosen to run your own business and that you operate on an independent business to business basis.
Please be aware that if you provide responses to this checklist which indicate that you may not be compliant with relevant legislation we will:
• suggest you work via a compliant umbrella company – see Appendix 1 or
• if you cannot resolve your non-compliant responses we may have no option but to terminate your agreement with us and
• we may be unable to process any payment to you whether directly or indirectly through an intermediary until you complete and sign this form, in a way which is satisfactory to us and contains all the information and documentation referred to below.
As a general rule we contract only with PSCs and genuine umbrella companies. Therefore, if you contract or plan to contract through an intermediary which is neither a PSC nor an umbrella company we may need to contact you with some further questions.
Please be aware that if you provide responses to this checklist which indicate that you may not be compliant with relevant legislation we will:
• suggest you work via a compliant umbrella company – see Appendix 1 or
• if you cannot resolve your non-compliant responses we may have no option but to terminate your agreement with us and
• we may be unable to process any payment to you whether directly or indirectly through an intermediary until you complete and sign this form, in a way which is satisfactory to us and contains all the information and documentation referred to below.
As a general rule we contract only with PSCs and genuine umbrella companies. Therefore, if you contract or plan to contract through an intermediary which is neither a PSC nor an umbrella company we may need to contact you with some further questions.
1. Please tick (as appropriate) the type of entity you contract/intend to contract through*:
□ a company you own and control (a PSC) (Complete Sections 1 and 3 only)
□ an umbrella company which employs/will employ you on a PAYE basis (Complete Sections 1 and 2 only)
□ another type of company – please provide details
□ a company you own and control (a PSC) (Complete Sections 1 and 3 only)
□ an umbrella company which employs/will employ you on a PAYE basis (Complete Sections 1 and 2 only)
□ another type of company – please provide details
And then finally this:
<Agency> has a legal obligation to provide a report to HMRC on a quarterly basis. Your cooperation in completing this checklist is of great importance. Please be aware that if we do not receive the above information by the date set out in our covering letter, or you provide responses to this checklist which indicate that you may not be compliant with relevant legislation:
• we will suggest you work via a compliant umbrella company – see Appendix 1 or
• if you cannot resolve your non-compliant responses we may have no option but to terminate your agreement with us and
• we may be unable to process any payment to you whether directly or indirectly through an intermediary until you complete and sign this form, in a way which is satisfactory to us and contains all the information and documentation referred to below
• we will suggest you work via a compliant umbrella company – see Appendix 1 or
• if you cannot resolve your non-compliant responses we may have no option but to terminate your agreement with us and
• we may be unable to process any payment to you whether directly or indirectly through an intermediary until you complete and sign this form, in a way which is satisfactory to us and contains all the information and documentation referred to below
1. Any other agencies sending out similar Due diligence checks to their contractors?
2. Before I call their bluff, is this something really to be taken seriously? Remember, the contractors would certainly have submitted information that is important for the agency to produce a legal contract. I certainly did. Why again should one submit this information along with other none-of-the-agency's-business information?
FLC
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