Once again, there has been a negative focus on the Umbrella market, with some operating unethically. In addition to the ever-increasing prevalence of blatant non-compliant schemes, which increases the risk to businesses and reputational damage by engaging in such models. 

HMRC policy of naming and shaming Current list of named tax avoidance schemes, promoters, enablers, and suppliers – GOV.UK (www.gov.uk) those providers promoting such scams and the call for more transparency from HMRC. It can only help combat such practices, which is why Agencies are exploring different payroll options. For example, AP Agency Payroll is seeing significant interest in the PEO and straightforward PAYE payroll models.

 

Payroll Bureau vs. PEO

 

What’s the difference?

 

Payroll Bureau services have been in place for employers/agencies looking for value in their payroll processes for many years. They are simply a payroll processing service with liability and responsibility on the shoulders of the employer/agency. However, the Professional Employment Organisation (PEO) is a fully outsourced, consolidated payroll and HR service, with 100% liability on the shoulders of the payroll provider, freeing up valuable time to concentrate on your business.

 

PEO supports organisations that wish to offer simple PAYE rate employment without the hassle of an in-house payroll team or the administrative burden. 

 

It is an excellent solution for low-paid sectors and situations where the complexity and confusion of Umbrella payslips are causing issues.

 

• Dealing with payroll queries

• Adjusting tax code changes

• Administration of Jury duty letters

• Processing of attachment of earnings orders

• Managing pension processes

• Managing SSP, Maternity/Paternity

• RTI reporting

 

It’s straightforward, AP PEO (Professional Employment Organisation) is PAYE for the contractor and an outsourced payroll function for agencies and end hirers. When workers are engaged with AP PEO, they are fully employed and paid PAYE at their actual quoted gross rates agreed by the agency or hirer. Employment costs are dealt with separately between AP PEO and the agency or hirer; the contractor is never charged for the service. Their payslip is straightforward and transparent, and they know precisely their pay rate every time.

 

Contractors are employed and entitled to the same statutory benefits as permanent employees. Better still, they also have access to an exclusive range of rewards, high street discounts, and well-being perks via our ap rewards platform.

 

Agencies

• Complete Supply Chain Transparency – Simple process, full visibility of the payroll process
• Increased Candidate Experience – Attract and retain candidates with positive experiences
• Improved Cash Flow – Free payment terms helping your business grow, based on approval
• Cost Savings – Reduce your internal costs, and improve efficiencies by outsourcing

Contractors

• Simple pay rates – Get paid the actual gross rate quoted by their agency.
• Straight forward payslip – No employment costs or margin charged
• Daily Payroll – Make every day a payday. Our standard payday is Thursday, but contractors can choose to get paid early with a simple request.
• 24/7 Online Portal – Access payslips, upload receipts for expenses, request pay on a day that suits them, and redeem benefits with a single sign-in
• Full Employed Status – Benefit from receiving holiday pay (from gross rate) and all statutory entitlements
• Fully Insured and Compliant – Insurance cover provided throughout the assignment, and all personal taxes paid, so no surprises
• Employee Benefits – Take advantage of savings on high street shopping, including seven significant supermarkets, eating out, special rate cinema tickets, discounted gym memberships, and our Fuel Card, which offers discounted fuel at over 35% of the UK motorway service station 

 

What’s are your thoughts? We would love to know.