The Onshore Intermediaries Legislation - EEBS

The Onshore Intermediaries Legislation

Not To Be Ignored!

The risk to your Business

New legislation disregards employment relationship, and requires all intermediary suppliers to operate PAYE on all payments made to INDIVIDUALS

A large number of contractors unaware of the new laws or have been provided with a perfunctory, ill informed response by their supplier

Contractors must demonstrate the appropriateness of any arrangement, concentrating on supervision, direction or control

Threat in detail

Far reaching changes in how payments to individuals are taxed when paid through ANY type of intermediaries (including a traditional agency supplier, a payroll provider, an umbrella company, a specialist provider or even a sub-contractor) were introduced as part of the budget in 2014. The legislation was proposed and implemented very rapidly and with little consultation and, whilst receiving a degree of publicity at the time, it has passed into law without much attention.

The new legislation disregarded the traditional definition of an employment relationship, and required all intermediary suppliers to operate PAYE on all payments made to INDIVIDUALS, unless they could prove they were not subject to a new test of direction, supervision or control.

To give this new legislation financial teeth a debt transfer provision was included. This meant that financial liability for deduction of PAYE was extended up and down the contractual chain with end-users potentially being ultimately liable for omissions or failures of intermediate contractors.

The biggest concern is that a large number of contractors, especially those with long standing agency supply arrangements, are still not aware of the new laws or have been provided with a perfunctory, ill informed response by their supplier. This is particularly concerning, as the transfer of debt provision has the potential to make individual business owners liable for tax bills they did not know existed.

BE WARNED

The new regulations require contractors to demonstrate they have actively considered the appropriateness of any arrangement, concentrating on supervision, direction or control (SDC), a simple declaration, provided by your existing supplier but signed by you, confirming that your tradesmen are self-employment is most definitely not good enough!

What is the solution?

Engage EEBS as your sub-contract labour supplier. We have worked extensively with the Aspire Business Partnership the leading employment taxation specialist in the industry to create Revenue compliant, bespoke solutions for construction industry clients. Our systems are independently verified, and are tailored to each clients needs.

How does it work?

EEBS engage the sub-contractors that you introduce to us, under terms individually tailored to ensure complete legal compliance for both you, and the sub-contractor. We then act as the contractor with full legal responsibility for those individuals, and any employment challenges that arise during the engagement.

James Last
“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

James Last
"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

James Last
“I can call on EEBS when required without the worrying of being tied into an agreement.”

Peter James, Pete’s Landscaping

James Last
"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."

Ally Din

James Last
"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."

Ceilidh Embling

James Last
"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!"

Dee Nathwani

James Last
"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."

Madeleine Ball

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CELEBRATING 20 YEARS
CELEBRATING 20 YEARS
CELEBRATING 20 YEARS