Services for Recruiters

Nyman Linden is a regulated firm of Chartered Accountants who will never make extreme service claims and who will never knowingly endorse tax structures and positions that could expose your agency, your clients and your contractors to fall foul of the law.

Contractor Compliance in the UK

By using the services of Chartered Accountants, such as Nyman Linden, who are highly experienced in the contracting market, your contractors will receive the best advice to help them maximise their net income – whether their work is inside or outside IR35 - by operating through their own Personal Service Company.

Accepting that all accountants are not the same, what can your contractors expect from Nyman Linden’s UK Contractor Division?

Personal Service Company

Nyman Linden can help your contractor to form a genuine, one-person limited company that will contract with you, the agency, in order to carry out the contract assignment.  Your contractor is the director who controls invoicing, the company bank account and decides how much to pay himself or herself – a combination of salary and dividends.

If you have contractors on UK assignments grossing more than £35,000 per year (whether inside or outside IR35) and who, instead of operating through their own personal service company, are turning their contracts through an umbrella company, that umbrella knows full well that your contractors are missing out on ALL the following benefits …

1. Increased income retention
2. A wider range of claimable expenses
3. Access to the VAT Flat Rate Scheme

Contractor Compliance Overseas

Why should any agency be worried about compliance?

Compliance is to be ignored at one’s peril because of:

1. The dramatic growth of information-sharing between tax authorities, particularly across Europe, asking each other to chase tax debts.
2. New surveillance laws have been introduced that widen the probability of email/fax/phone communications being misinterpreted by third parties.
3. More and more countries are introducing ‘Chain Law’ to collect tax.
4. Access the authorities have to funds held in offshore, personal bank accounts – where onshore and offshore banks (including in Switzerland) provide information on personal bank accounts to tax authorities.
5. The pressure on companies (including recruitment agencies) to embrace KYC (Know Your Customer) and AML (Anti-Money Laundering) procedures in their business dealings.
6. The growing number of client companies across Europe facing major investigations by their local tax authorities sparked by inappropriately structured contractors.

What should every agency be doing?

A growing number of recruitment agencies and consultancies are not only placing compliance solidly on their radars but are converting it from “a weapon of sales destruction” into “a powerful selling tool” and “profit generator”.

Not only are these recruiters offering their clients “the best candidates at the lowest rates”, they are now highlighting compliance as a key protector for the client and contractor (as well as for themselves) from possible future tax issues.

It is a weak agency that does not ensure its contractors are accessing best advice on compliance.  Unquestionably, that advice should be outsourced to regulated firms whose statutory duty is to offer best advice appropriate to the contractor and the recruiter.  International Tax Solutions (a Nyman Linden group company) provides this role, being a London-based, international tax consultancy engaged by global consultancy companies to provide them and their expatriate consultants with regulated advice concerning contractor compliance. 

Why is acting out of ignorance not an option?

Ignore compliance or act out of ignorance at your peril!!!

Before signing a client’s contract, a recruitment agency would always research the client to prove it has a business understood by the agency, it is a genuine enterprise, it pays accurately and on time and it lives up to its side of the contract.
 
So why does that same methodical agency fail to carry out comparable due diligence into the solutions and services of the companies supplying their contractors?

The following is directed at the ill-informed and/or unconcerned recruitment agency that is blissfully unaware of its expatriate contractors not dealing with their income correctly:

• The UK Limited Company

• The Infamous Split Solution

• Chain Law

• Compliance v Commercial Risk

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Compliance Workshops

To positively support your business development plans for contractor placements in the UK and/or abroad, Nyman Linden Chartered Accountants and/or International Tax Solutions will be pleased to attend an internal meeting of your sales consultants and discuss general compliance issues affecting their contractors operating in the UK or their expatriate contractors operating abroad.  We want your sales consultants to leave our workshop understanding two major benefits that will greatly assist them in converting business:

1. We show how compliance can and should be the most powerful selling tool in their armoury when dealing with contractors and clients
2. They will gain a practical understanding of (and, therefore, be more in tune with) financial issues affecting their prospect placements

Innovative recruitment agencies are converting compliance from an irrelevant “weapon of mass sales destruction” into a dynamic selling tool.  Not only are these agencies offering their clients the best candidates at the lowest rates, they are now placing compliance as a key protector for the client and the contractor (as well as for themselves) from possible future tax investigations.

In our view, opting out of giving contractors best advice on compliance is a weak chink in any agency’s armoury.  That advice should be outsourced to regulated firms such as ours whose statutory duty is to offer best advice, appropriate to the contractor but not necessarily to the advising firm.

Outsourcing

Introduction

Agencies often need help managing day-to-day accounting functions.  If you and/or your staff are spending too long on such tasks or if you want to remove the burden of managing routine accounting activities, then outsourcing that work to Nyman Linden could be your solution.

There are many reasons for agencies to outsource accounting functions and, therefore, our services vary by agency and technical backup.  Support is then provided to meet their specific needs. 

It is not uncommon for us to act as bookkeeper/accountant in start-up situations.  We are frequently asked to act as an agency’s payroll department. 

Our Services

Our service is flexible and can include:

• Setting up or improving computerised accounting systems
• The preparation of management accounts
• Maintenance of books of account
• Assistance with, or preparation of, VAT returns
• Payroll services
• Assistance with, or preparation of, cash flow and budget forecasts