RACS Group launches product ahead of HMRC legislation
RACS HYBRID has been devised in accordance with the new guidelines which have now been published by HMRC following an extensive consultation period which closed on 4th February.
Both intermediaries and agencies have been eagerly awaiting HMRC’s guidance notes as the new legislation has wide-ranging implications for the industry as a whole.
In essence, the legislation has been inspired by the Treasury’s desire to receive full tax and national insurance contributions from workers claiming to be & lsquo;self-employed’, but whose working arrangements do not comply with true self-employment criteria.
The central facet of the legislation revolves around the issue of CONTROL and whether or not a worker is genuinely able to dictate hours of labour, tasks undertaken or work without supervision. Clearly if a worker does not have control over his or hers own assignments, then they are deemed not to be self-employed.
To help agencies ascertain the true status of a worker on every assignment, RACS HYBRID has the flexibility to allow both employment and self-employment depending on the answer to the question of CONTROL.
RACS HYBRID’S automated procedures demand that the question of CONTROL is answered unequivocally throughout the process thus protecting the agency from any threat of non-compliance. Under the terms of the new legislation, should agencies be provided with false or fraudulent information, then LIABILITY will pass to the person or business supplying the fraudulent information in many cases this could be the hirer.
RACS Group’s managing director, Terry Hillier, commented, “Our commitment to all aspects of compliance has dictated that RACS Group has actively participated in HMRC’s consultation period regarding the ONSHORE EMPLOYMENT INTERMEDIARIES & FALSE SELF-EMPLOYMENT.
We have scrutinised the new guidelines and developed RACS HYBRID to comply fully with both the terms and spirit of the new legislation. As ever, RACS Group’s primary objectives are to provide payroll services which conform to all aspects of the law and to protect the interests of agencies and their contractors RACS HYBRID succeeds in achieving both aims.”