Solutions for a combination skilled and unskilled workforce.
The Client and the Issue
EEBS work with a traditional family building firm, which is typical of our client base across the country. They specialise in domestic refurbishment, extensions, new garage builds etc, and general building.
The owner of the company worked regularly with the same team of multi-skilled tradesmen plus a number of unskilled Labourers. The client provided all of the plant, equipment, and materials for the tradesmen apart from their hand tools and also provided branded PPE. The tradespeople were paid on an agreed daily rate, and had previously been engaged under verbal agreements. The client runs up to four projects at a time.
The Risk (is obvious)
HMRC are extremely likely to view the current arrangements with all the tradesmen as employment rather than self-employment (see risks)
After a detailed review of all of the tradespeople’s working practices, it was clear that the supply of skilled sub-contractors could be outsourced to EEBS. However, the working practices for the unskilled labourers meant they fail the supervision, direction or control test: This means they must, by law, be paid through PAYE.
There were three options for the client:
1: Engage the unskilled labours directly as employees
2: Engage them through EEBS on a hybrid engagement where they remain self-employed, but are paid under PAYE, or
3: Engage future unskilled labours through a traditional agency. This was the actual outcome: The tradesmen concerned were not prepared to be paid through PAYE and the client was unwilling maintain their direct CIS engagement, so the engagement was terminated by mutual consent, and the client replaced them with workers from a traditional construction Agency.
EEBS Solutions include:
To maintain the flexibility of a self-employed workforce without interference from HMRC
Not to be subjected to all of the costs associated with an employed workforce, including holiday pay and national insurance.
“We are confident that we can rely on EEBS to keep us up to date with any changes and ensure we continue to comply.”
Christine Shearing, Kenwood Groundworks
"J&J Windows & Doors Limited have been using EEBS Limited to pay my colleagues and I for over 6 months and I can quite honestly say that the service EEBS provides is superb! It allows me to remain self-employed, they ensure that I'm verified with HMRC, that my CIS tax is calculated correctly and most importantly that my wages are always paid correctly and on time. I would without a doubt recommend EEBS to friends, family, and colleagues."
James Last, J&J Windows & Doors
“I can call on EEBS when required without the worrying of being tied into an agreement.”
Peter James, Pete’s Landscaping
"We have used EEBS for our wage processing for around 3 years now. We were unhappy with the previous company as they felt 'too big' and did not provide a personal service at all. I am extremely happy with EEBS and can honestly say all their staff are pleasant, conscientious and an absolute pleasure to deal with. I cannot recommend EEBS enough, they thoroughly earn their (reasonable) fees and enable us to focus on more commercial and day to day aspects of running our company."
"We have used EEBS for 7 years now and we cannot fault their service. They keep us up to date with new legislation and regularly carry out compliance reviews. Their staff are friendly and knowledgeable and the processing rates are fair."
"We have used EEBS for 4 months now and what a delightful team. Toni & Colette have been nothing but "BRILLIANT" They have bent over backwards to resolve queries and are always at the end of the telephone... Thank you EEBS for being FANTASTIC!"
"Would highly recommend EEBS, we have used a few payroll companies in the past but by far these guys are the best. Always so helpful and very knowledgeable, such a great company to work with."