PayePass Fortify umbrella accreditation sets new compliance standard

This is a guest blog by Julia Kermode, CEO at  PayePass

In recent years, repeated reports of tax avoidance and questionable practices have rocked the umbrella sector. Tax avoidance schemes are far too commonplace, luring in unsuspecting workers with promises of unrealistically high take-home pay.

Despite the tragedy of the Loan Charge Scandal, disguised remuneration schemes remain rife, with workers ultimately on the hook for unpaid taxes. Worryingly for the recruitment sector, there is at least one group legal action underway that is based on agencies being liable for not paying workers via payroll. Not only that, this group action is already at an advanced stage, and it could have very significant repercussions. 

Meanwhile, the individuals who design and promote these schemes escape justice. Even where there isn’t outright tax avoidance, there are accusations of unethical practices such as skimming or withholding holiday pay; something else that’s depressingly common. The root cause of these problems is the same: the government’s failure to police and regulate this sector. 

But now – following the launch of Fortify – umbrella companies and recruitment agencies engaging these businesses can demonstrate their compliance with ease. 

Stepping up to solve the problem

While compliance activity has increased – and a number of tax avoidance schemes successfully identified and served Stop notices – the lack of regulation means such schemes continue to proliferate. Try as it might to shut down these fraudulent operations, HMRC is swimming against the tide.

In the continued absence of government action, PayePass is stepping up to solve the problem, with the launch of a new umbrella accreditation, Fortify. 

What is Fortify? 

Developed in response to industry demand, Fortify is our new prestigious accreditation which promises to ensure there is nowhere to hide, so successful applicants will be proud of proving their compliance.

Developed in response to industry demand and underpinned by robust auditing, Fortify goes well beyond the legal minimum standards – establishing a new benchmark which we believe all reputable umbrellas should meet or ideally, exceed.

Our rigorous audit process puts all elements of an umbrella company’s operations under the microscope, combining forensic digital analysis with in-person vetting of all systems and processes.

In short, Fortify is the only auditing process that can absolutely certify compliance, offering confidence to recruitment agencies, workers and the wider supply chain.

How does Fortify work?

We know that tax avoidance and other illegal activities – or immoral, but technically lawful practices, such as skimming – can be covered up in a number of creative ways.

That’s why Fortify leaves no stone unturned. We intensively examine core business areas including compliance activity, corporate governance and payroll, in addition to payment and deductions calculation, communication and processing.

Following our own independent analysis, PayePass’s in-house Legal and Accountancy specialists – qualified, regulated professionals – also conduct a hands-on, in-person analysis of systems and processes at the applicant’s business premises. It’s not enough for an umbrella to tell us what they’re doing is compliant, we need to see it with our own eyes.

This comprehensive look at the commercial, financial and ethical elements of the business means that we truly get under the skin of an umbrella company, going further than any other auditors to prove compliance.

About PayePass

PayePass is committed to ending tax avoidance in the umbrella sector. Thousands of agencies, and almost three-quarters of a million umbrella workers, deserve better than the status quo.  In the absence of government regulation, PayePass provides peace of mind, protection and reassurance that umbrella companies are operating compliantly. 

Going above and beyond the abilities of other compliance providers, PayePass – an REC Business Partner – guarantees that the companies which obtain our Fortify umbrella accreditation are not involved in fraudulent or non-compliant activity.

To find out more about Fortify, please visit the PayePass website. Protect yourself, choose PayePass