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Good news for Gabem's contractors and agency clientsGabems exemplary standards are commended at a time when HMRC is scrutinising dispensations closely.
In the Chancellors pre-budget report and later announcement in December 2008 concerning umbrella companies, the Government stated its intention to focus on non-compliance among companies providing payment services or contract arrangements to temporary and self-employed workers. After an on-site review by HMRC, Gabem Management Limited has been granted an expenses dispensation.
We are delighted because it recognises the companys exceptional efforts to ensure compliance, says Trudy Gordon, Gabems managing director.
Gabem took the unusual step of inviting HMRC to check its policies and procedures. As a result, HMRC was able to examine and approve the over-arching contract that Gabem has set up for its umbrella employees. This is an important differentiation for Gabem, because such contracts are a pre-requisite for all umbrella organisations, but it appears that some contracts currently offered elsewhere in the marketplace fall foul of the law.
Having agreed Gabems contractual approach, HMRC also granted the expenses dispensation. This benefits individuals being paid through Gabem because it allows them to offset legitimate expenses against tax liabilities without having to report the expenses on their tax returns. In addition to reducing administration, the dispensation also reinforces confidence that Gabem is doing business in a compliant and effective manner.
This is a difficult market in which to operate because of the complex and changing legislation, says Trudy Gordon. We are obviously delighted with HMRCs approval of our procedures and systems, but were not surprised. We have invested in the best advice available, both from our legal advisers Penningtons and from KPMG. Inside Gabem we work extremely hard to make sure we not only provide the best service to our customers, but are also completely compliant with current legislation. 
The abuse of expenses dispensations is all too common within our industry and is tarnishing the reputations of those organisations that go to great lengths to be compliant. Thats why we invited HMRC to see our operations, as a result of which they commended us on our robust processes and the steps we take to ensure we safeguard our operatives. We have always required employees of the Gabem Umbrella company to present receipts for work-related expenses, and will continue to do so. Other, less compliant organisations may face more difficulties when their compliance is challenged.


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