Every umbrella company claims somewhere in its documentation or website ‘HMRC Compliant’. But is it? Well, this area of tax law is very, very vague, and to be honest the HMRC seems to prefer clues to straight forward rules. We at Zeva consider our USP to be Compliance and Credibility. We do everything to keep it simple in the belief that if we don’t try to bend or distort the existing rules, then we are doing everything possible to protect ourselves, the workers, the agencies and the end client.

Fact : All  workers are eligible to claim legitimate expenses when incurred wholly, exclusively and necessarily in the performance of their duties.

That is, where legitimate expenses have been incurred, our employees are entitled to claim expenses tax free. There are certain benefits that are specifically suited to people working at a temporary location, such as travel, accommodation, and in some cases incidentals and meal allowances. Temporary workers, under current legislation, therefore benefit from expenses that some more permanent workers are denied.

A quick look at our expense guidelines demonstrates that Zeva is very strict, and only accept expenses allowed by HMRC, and the exact same expenses, as would a normal employer. Zeva do not use dispensations, and require original receipts.

By ensuring expenses are legitimate and receipted Zeva protect all parties from future claims for tax and National Insurance from the Tax Man.

Fact: Dispensations are for the benefit of the employer, reducing administration and reporting.

They are not an acceptance by HMRC that expenses can be paid where they have not been incurred. Therefore an umbrella company (or ANY employer) that allows dispensations without proof that the costs were legitimate and actually incurred, risks the HMRC asking for proof that these costs were actually incurred (So much for not needing receipts), and request payment of Tax and National Insurance, Including Employers National Insurance, from the umbrella company, the agency, and its directors. This is why Zeva has a strict policy of No Dispensations.

Fact: The only variable factor in a compliant umbrella company is the fee that it charges, and the service it provides.

All compliant companies have to follow the same taxation rules,such as holiday pay, minimum wage requirements etc. as each other. This means that the only way we can rise above our legitimate competition are in the following area.

Service: Zeva’s service is second to none. We have invested heavily in our systems, and currently offer online accounts for Agencies and Contractors. Zeva conducts compliance and health & safety reviews of our workers at acceptance, and every six weeks after. All contracts are available for acceptance by the worker online, (as well as all historical contracts and pay advices etc)  so ensuring there is a full compliance audit trail for all our workers.

Fact: Workers being paid through Zeva Umbrella are our employees. They have all the statutory rights given to normal employees, including holiday pay, sickness, maternity minimum wage etc.

Zeva does not try to hide in some middle ground. If there is any dispute with the worker regarding their employment terms, Zeva take full responsibility. Zeva has a very rigorous compliance department. Before any contractor is accepted, each worker is assessed, and health and safety determined. A thorough contract is produced that the worker can accept online instantly. A sample of this contract is available here.

In Conclusion: Zeva is proud that to be the most compliant umbrella Company in the business, by ensuring that:

• Expenses are only paid where properly incurred, and allowable under existing clear HMRC guidelines
• Each worker is assessed and fully informed of Zeva’s procedures before acceptance
• Full contracts are exchanged, with periodical review on each new project every six weeks (whichever sooner)
• Non acceptance of Dispensations
• Full implemetation of minimum wage requirements and all employment regulations
• The correct PAYE and  National Insurance are paid by the worker in the first place