You will be forgiven for feeling that the Government appears to be hell-bent on disrupting the UK’s army of temporary workers and those that recruit them. Although the Government’s intentions may be sincere, its execution leaves much to be desired. Not only have the changes to travel and subsistence (T&S) regulations had a dramatic affect on contractor take home pay and consequently agency margins, soon changes to the taxation of Personal Service Companies will have an even greater impact.
The changes to T&S regulations coupled with the statutory exemption rules mean that even if expenses are considered to be allowable after the required Supervision, Direction or Control (SDC) tests, there simply is no practical way in which an umbrella company can pay its workers their variable allowable expenses.
To spell out the impact of these changes, umbrella companies will no longer be in a position to command the same level of margin from their contractors, which in turn will affect the level of support that umbrella companies can offer the agencies that they deal with. Without this historic support from umbrella companies to help agencies offset overheads, agencies will need to get smarter in the way they do business; which is where Anderson can help.
If an agency team member is not a fee earner, then it is likely that their role can be delivered more cost effectively and efficiently through outsourcing. Anderson can provide support for non-core functions like CV verification all the way through to IT, finance and admin support.
We have also tweaked our PSC models, including Choice, which provides a simple, compliant ‘one-stop shop’ PSC solution for agencies. If your contractors are looking for a reliable and experienced contractor accountant, you can rest assured that they will be well looked after by Anderson (a member firm of the Institute of Chartered Accountants in England & Wales) and be totally compliant when working with you. We have also introduced a new accountancy product called Anytime, aimed squarely at the more experienced PSC contractor and which combines FreeAgent accountancy software with our highly experienced and knowledgeable international team of accountants. All the savings that can be achieved are passed directly back to your contractors who will be charged an almost unbelievably low level of fee for this service (£720 + VAT fully inclusive).
We have built our reputation on supporting both agencies and contractors alike, and we continue to help both you and your contractors make the right engagement decisions based on individual circumstances.
Why Choose Us?
Founded by employment and accountancy experts over a decade ago, The Anderson Group has successfully provided back and front office support to hundreds of agencies, improving their agility, reducing their operational costs and accelerating their business growth and innovation. We have a strong reputation in the recruitment sector for championing the rights of both agencies and contractors so fully understand the issues facing the industry.
We work with thousands of contractors each week and hundreds of agencies across the country, so it’s fair to say we know our stuff. We are one of the few companies to offer support for the full range of contracting and employment solutions – from PAYE employment all the way through to a ‘High Street’ accountancy service – with various options in between.
Our customers range from smaller employment agencies, looking to improve margins and work more profitably through tax efficient solutions for contractors, to larger recruiters wanting to replace multiple incumbent suppliers with one proven supplier, who can streamline costs, efficiencies and meet future requirements.
Our highly trained and skilled teams in the UK, India and the Philippines enable us to offer wide ranging support, as you need it, and are available beyond 9-5 because we understand that’s how you operate: a real benefit for agencies working within tight SLAs, for example.
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