Three quarters of recruiters ‘ready for T&S changes’
Most contractor recruitment firms feel ready for the forthcoming changes to travel and subsistence (T&S) expenses rules, according to new survey research by ADVANCE.
The company polled more than 100 staffing firms to gauge opinion on the proposed reforms, which are due to take effect on 6th April.
77% of survey respondents said their agency was either very prepared or reasonably prepared for the new legislation.
Despite the fact that the legislation has only been published in draft form, nearly half (42%) of those surveyed already had post-April solutions in place for their contract, freelance and temporary candidates. Of those that didn’t, the most common aim was to have solutions implemented by the end of February.
Only 14% of respondents rated their personal understanding of the T&S legislation as poor, with the rest feeling they had either an excellent, good or average understanding.
81% felt they had at least a basic knowledge and understanding of the concept of ‘supervision, direction or control’ (SDC), which will be used to determine an umbrella company contractor’s eligibility for T&S expenses.
Shaun Critchley, joint managing director at ADVANCE, described the company’s findings as evidence that staffing firms are taking a pro-active approach to the new legislation.
He said, “Even though liability is expected to sit with umbrella companies and their directors, agencies are taking the proposed T&S reforms extremely seriously.
“Staffing firms are keen to ensure that umbrella company employment will still be a viable option for their contractor candidates after April.
“This explains why so many agencies have done their research and are looking to have solutions in place sooner rather than later.
“We fully expect demand for our umbrella solution to increase after April as agencies seek a compliant provider with the ability to apply the new SDC tests accurately.
“Here at ADVANCE we have been assisting agencies in managing SDC in the self-employment sphere for the past two years. We therefore feel ideally placed to help contractors and agencies navigate the changes to umbrella.”