The FCSA is the UK’s most recognised professional body dedicated to ensuring the supply chain of temporary workers is compliant with UK tax law. In response to recent market activities, the FCSA has updated its Codes of Compliance. Keep reading, and we’ll explain more.
Why has the FCSA updated its Codes of Compliance
You may remember a recent article we published explaining how an unnamed umbrella company had been accused of retaining accrued holiday pay. This unethical practice raised several eyebrows of stakeholders in the industry. There has never been a stronger call for the umbrella company marketplace to be regulated. The FCSA has updated its Codes of Compliance to ensure holiday pay is clearly addressed – ensuring accredited members act responsibly and in the best interests of their employees.
What has been amended?
The FCSA has made three main amendments to their Codes of Compliance. These are:
- Accredited umbrella companies must be more transparent with holiday pay, including references in the contract of employment and on umbrella company payslips.
- FCSA members must submit independently audited accounts.
- Illustrations given to contractors must follow stricter guidelines – to ensure they’re accurate and honest.
The FCSA discuss the amended Codes of Compliance
“Extending to over 540 areas of assessment, the FCSA Codes are regarded as the most rigorous assessment of compliance and ethical standards in the industry. Our latest comprehensive review of these Codes has made them tougher and even more transparent.
This process has taken no less than five months to complete. It began with a full independent review by five of the UK’s leading legal and financial firms who are regulated and have vast experience in our sector. Ernst and Young, BDO, Saffrey Champness, Brabners, and JMW are the firms that have contributed to this review.
They provided the independent expert challenge that give the Codes the rigour they need. HMRC, BEIS, and leading industry trade bodies were also consulted during the process.
So, what’s changed? Our Codes now provide greater transparency on the financial illustrations that our member firms need to provide to contractors. Member firms are required to provide greater transparency regarding holiday pay in every umbrella employment contract and payslip. All member firms are now required to submit independently audited accounts. What hasn’t changed however is the continued independence of the assessment process. Every step of the assessment process is conducted by independent and regulated accountants and solicitors.
No member of FCSA staff, the Board, or membership are involved in this process – ensuring complete independence. What’s more, we publish our Codes so that any agency, end hirer, or contractor can see exactly what our members are assessed against.
The most comprehensive and compliant set of evidence-based standards now exist in our sector. No one else in the sector can give contractors or the supply chain this level of assurance.”
Top 10 umbrella companies
To help contractors and freelancers make better-informed decisions regarding their chosen umbrella company, we have collated a list of our top 10 umbrella companies. Some have fantastic offers at the moment! Please check them out now, and always make sure you chose a compliant umbrella company for your payroll.