The BBC Radio 4 Today Programme this morning exposed a tax avoidance scheme being promoted by an employment solutions company. The scheme enables recruitment agencies to claim Employment Allowance multiple times, each time reducing their National Insurance bill by £2,000.
As the leading trade association for employment service providers, the Freelancer and Contractor Services Association (FCSA) has long been campaigning to raise standards and stamp out bad practice where it exists.
CEO Julia Kermode said:
“I am very concerned to hear about such practice taking place, and I would like to emphasise that FCSA does not condone these tax avoidance schemes, nor does it represent any firm operating them.
The Government’s Employment Allowance Scheme was clearly developed with the intention of supporting small businesses and recognising their important contribution to the economy, and not to facilitate profiteering by unscrupulous providers. We support the media bringing this to our attention so that we can unite in opposing the scheme, and take steps towards eradicating such practices.
I would like to use this opportunity to redress the balance as the vast majority of employment service provider firms do not operate in this way, and should not be tarnished with the same brush.
We do not tolerate tax avoidance, and FCSA will continue in it’s mission to raise standards throughout the contractor management sector, ensuring that bad practices are stamped out.”