Tax Compliance
Agencies and clients are at risk if any one of their contractors are not compliant with tax legislation. The 'taxman' can chase agencies and clients for lost revenue and the resulting penalties.
A major element of the 2007 Budget was the introduction of "Transfer of Debt" legislation. This means that if your agency or client does not ensure you are using a compliant payment method, they will also face the same threat of having the bill for any lost revenue passed onto them. That is why many agencies now have a Preferred Suppliers List (PSL), which is basically a shortlist of audited payroll companies that are complaint for particular contracts.
You will notice a distinct change in how your agency operates with chosen payroll companies through 2007, as they adjust their internal procedures ready for the start date of the "Transfer of Debt" legislation, which is planned for January 2008.
To speak to one of our tax experts call 0800 434 6402.
