Press releaseThursday 19 November 2009
Service Providers Association Launches Code of Conduct
- HMRC welcomes the development
As a founder member of the Service Providers Association (SPA) Giant is delighted to announce the launch of the first ever dedicated code of conduct to encompass the broad range of businesses that operate in the service providers sector, including umbrella organisations and businesses providing support services to limited companies, with HMRC encouragement.
The code, designed to cover companies who provide employment, payroll, tax, accountancy, administrative support and advice to the professional freelance workforce, outlines the strict standards and legal guidelines that apply to our industry.
As part of the code of conduct process we will undergo an independent review from one of the ‘big four’ accountancy practices, with the review documentation being voluntarily submitted to HMRC – an act of open-book accounting and independent assessment that demonstrates our commitment to principled and transparent business practices.
A spokesperson from HMRC comments: “HMRC welcomes moves by some Service Providers in the temporary labour market to self-regulate. A commitment to effective self-regulation and transparency in dealing with HMRC is a positive step in reducing compliance burdens and HMRC is pleased to give advice on its interpretation of the law to those wishing to a devise a regulatory framework.
The Service Providers Association's Codes of Conduct, on which HMRC has provided advice, is a welcome example of self-regulation in practice.”
The REC welcomes the proposal from Service Providers Association (SPA) that umbrella companies who are in their membership will have to sign up to a rigorous code of conduct.
Kevin Green, Chief Executive of the REC says:
“This is a giant step in the right direction, we and many of the recruitment businesses we represent have been very wary about the practices of some organisations in this space.
Not only will SPA members sign up to the code but it is robustly reviewed by an independent third party who will forward on to the HMRC the outcomes of their assessment. Once these audits have been completed it will certainly provide improved confidence for end user clients and REC members.
However we still advise REC members to conduct their own due diligence before entering any contractual agreement with a third party.”
Ann Swain, Chief Executive of APSCo:
“We are delighted to support the launch of the Service Providers Association’s Code of Conduct. This robust Code, and its support from HMRC, demonstrates clearly why APSCo members have confidence in using the services of SPA members.”
The association’s new website www.serviceproviders.org.uk also launches today, providing news and advice from inside the industry.
An SPA spokesperson comments: “SPA was founded to represent the interests of professional freelance workers and encourage professionalism and transparency throughout the service providers sector. The code of conduct we are launching today represents a vitally important step forward in this process and is significantly supported by HMRC. We look forward to continuing our work in supporting freelance workers while building Government and regulators understanding of our industry.”
Giant has been a member of SPA since its launch in 2008, when we came together with other leading players in the industry to respond to a stream of proposed regulation which revealed a lack of understanding from Government as to how the temporary labour market operates. That year, SPA successfully engaged in the HM Treasury consultation process on the issue of subsistence and travel expense relief for freelance workers employed by umbrella companies. We look forward to keeping you up to date with further developments from the association.
Note: Established in 1992, giant group specialises in providing services to recruitment agencies, temporary workers, freelancers and contractors. The range of services include agency back office solutions from giant precision (www.giantprecision.com) – timesheet management, billing, payroll, contract management, pre-employment and background checking, BACS disaster recovery – and giant umbrella payroll services where giant is the professional employer organisation employing and payrolling the temporary workers and contractors.
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