Recently I was interviewed by Recruiter, for my response to the crackdown by HMRC on Umbrella companies, and in particular the abuse of expenses.
Zeva’s view is that as we follow all HMRC requirements to start with we have little to fear. Regarding expenses, Zeva has always prioritised compliance.
Dispensations are the biggest worry to most umbrellas and the Taxman. Zeva has never applied for any dispensations as they are open to abuse. Rather, expenses should be managed in a professional manner from the start. This may take more time and effort, and will not always produce the same pay as a less diligent umbrella. But any savings resulting from fraudulent or inappropriate claims may only be short term, and may cost everyone more in the long run. A compliant expenses procedure ultimately protects not just us, but the agency, the end client, and the worker.
Zeva’s compliance procedure starts at registration:
• First of all is this worker eligible for expenses? All our workers are assessed for status at registration, and thereafter every 6-8 weeks.
• Secondly, have these expenses been incurred by the worker wholly in the execution of his duties? We process all expenses individually and require receipts for all expenses. These are then checked for compliance, and only then will they be paid to the worker. We certainly do not rely on the worker to know what is, and what isn’t, a legitimate claimable expense. It is after all what we are paid for.
• Thirdly, do we have complete records to prove the first two steps? All contracts and receipts are stored or securely scanned in a manner approved by the HMRC, and kept for a minimum of 7 years. Additionally, all contracts are currently viewable online by our clients, so you don’t have to just have to take our word for it.
Below is a link to the Recruiter article. As stated in the article all the Umbrella Companies mentioned are probably within the top 10-15% in the industry. Zeva however would say that it isn’t a matter of degree, you are either compliant, or you are not. As far as we are concerned Zeva is the only fully compliant Umbrella Company.
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