Whether Umbrella PAYE, CIS or the increasingly popular PEO models, both recruiters and contractors have found benefits in working with specialist organisations such as ours to handle the tax and legal implications of contractor engagement.

The HMRC recognises the importance of the Umbrella sector and its legitimate engagement of workers and has published their guidance for contractors engaged through Umbrella PAYE

Behind the scenes, HMRC have been aggressively pursuing promoters of Mini-Umbrella (a VAT and NI evasion model) via their VAT compliance teams, retrospectively cancelling the entire input VAT value for the affected agency from all invoices paid to the Mini-Umbrella company.

They are also applying the Kittel Principle, stating that either the recruiter knew of the evasion or should have known, to place a significant debt burden on the recruiter and in some cases have transferred part of this heavy liability onto Directors personally.

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HMRC are also openly naming and shaming tax avoidance schemes with a bias towards the repeatedly discredited Contractor Loan schemes.

With these, the initial challenge comes to the contractor themselves receiving significant tax bills years after the work was completed. If you’ve referred a contractor to such a scheme, expect them to contact you and share their concerns.

However, in a challenging market the use of qualified, accredited outsourced employment services is beneficial to recruiters and, when administered and presented appropriately, contractors with continuity of employment at its heart.

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NumberMill Accounting can support your organisation navigate this. End-hirers and agencies have engaged us to:

–  Conduct reviews of contracts of engagement with sub-contractors, agencies/other intermediaries that may be within the supply chain.

–  Issue questionnaires to main suppliers to understand the work force that they engage and how they engage them.

–  Collate and assess the responses in order to identify the areas of risk within the supply chain.

The reports we produced enabled our clients to remove dangerous liabilities from their supply chain, were evidence they met their due diligence obligations ahead of any HMRC investigations and reassured stakeholders that risks had been managed.

If you are intending to sell any time in the next few years, this becomes doubly important as a potential buyer identifying non-compliance in your supply chain during their due-diligence can result in a much reduced valuation or even the termination of a deal.

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For a confidential discussion on the subject, please contact us using the details below and speak to one of our specialists:

Call us: 0333 121 2001

Email us: referrals@numbermill.co.uk

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When you decide to sell your recruitment business, it’s important to ensure that you have all the necessary information about the organisation and its operations presented clearly and convincingly.

This information is vital for potential buyers, as it helps them evaluate the value of your business and make an informed decision about whether to proceed with the purchase.

Our Prep-For-Sale DD service helps gather all the necessary information about your business and present it in a clear and comprehensive manner for potential buyers.

This service will typically include:

–  Overview of the credibility of the financial information available to the business with recommendations

–  Preparation of information to be used by a Corporate Finance business in the selling process – specifically for the completion of the Information Memorandum

–  Full Due Diligence to support the Information Memorandum

–  Preparation of a credible forecast and projections to allow a Multiple based valuation

–  Outline of the implications on exit value of current taxation regimes

–  Ongoing work to maintain the levels of due diligence until the point of sale

Following the data-gathering stage, NumberMill will produce a written report of our findings and recommendations. The report will give an overall opinion of:

–  the opportunities and weaknesses

–  a multiple based valuation

–  tax considerations

–  a full due diligence report (based on level of service selected)

Why would I want to invest in a project for a company I want to sell?

Following our analysis and presentation to you, NumberMill will provide recommendations on steps that could be taken to strengthen your financial position in anticipation of sale of business and ensure that the sales price is maximized.

We will also provide recommendations on enhancing presentation of financial and non-financial information to a potential buyer performing a due diligence review.
With our support, you can present your business as a more credible acquisition for potential buyers.

For an initial, confidential conversation, please use our contact details below to speak to one of our specialists:

Call us: 0333 121 2001

Email us: referrals@numbermill.co.uk

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For recruiters, there are several accounting services required for healthy business growth which benefit from specialist support. The pace of recruitment far outstrips that of many other sectors and the regulatory framework is more nuanced and complex than general high street accountants are prepared for.

This combined with the specific cash flow challenges, particularly for temp and contract agencies, is why NumberMill specialise in this sector.

Having accessible accountants in your corner who understand how your sector works and can get straight to work streamlining your financial processes and maximising shareholder value has been a game changer for recruitment businesses transferring their accounting services to NumberMill.

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Such relevant services include but not limited to:

1.  Bookkeeping: This involves maintaining a business’s financial records, including invoicing, tracking expenses, and reconciling bank statements.

2.  Taxation: This involves preparing and filing tax returns, advising on tax planning, and dealing with tax enquiries and disputes.

3.  Financial reporting: This involves preparing financial statements, such as balance sheets, profit & loss, and cash flow statements, to provide a snapshot of a business’s financial health.

4.  Payroll: This involves managing a company’s employee payroll, including calculating and processing salaries, tax, and other deductions.

5.  Management accounting: This involves providing management with the crucial information they need to make informed business decisions, such as budgeting, cost analysis, and performance evaluation on a regular basis i.e. monthly or quarterly.

6.  Financing: This involves advising on financial matters related to business transactions, such as acquisitions, disposals and raising finance.

As part of your onboarding process with NumberMill, our accounting team will discuss what issues keep you awake at night and build a service package around what matters to you.

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Looking to move accountants?

Should you know anyone who you would like to refer, please send their contact details through to ltd@numbermill.co.uk

or

Call us on: 0333 121 2001 to speak to one of our experienced team member.

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