That depends on your circumstances and the situation can be quite complicated particularly if there are different intermediaries involved. So who takes responsibility the recruitment agency, the individual contractor or the umbrella company?
If you are paid PAYE, whether directly by your recruitment agency or through a business services company, then you shouldn’t have to worry about compliance. Your tax and National Insurance will be paid automatically as you earn.
If you are working through an agency but paid by an umbrella company the recruitment agency is responsible for ensuring they have a compliant supply chain but the situation is complicated.
In terms of liability, if you are operating as a Personal Services Company (PSC) unless the agency forced you down this route then the agency can’t be held liable. Liability rests with the company director (i.e. you).
The important thing is to ensure you are well informed and have considered your options. Ask questions and do your research as in most circumstances it is ultimately the responsibility of the individual to comply.
If you are registered as an umbrella employee and expenses are processed which shouldn’t have been then the umbrella company would be liable. However if you fraudulently claim expenses you haven’t actually incurred then you would be liable – it is important to only claim expenses you incur and can prove you incurred.
Reputable umbrella companies will work closely with agencies to establish the status of the workers they have registered with them. This will probably be done by asking you to complete a questionnaire to evaluating your situation and establishing if you are subject to Supervision Direction or Control.
If you have any concerns about compliance and your current situation then do get in touch, we will be happy to answer any questions you may have.
