With off-payroll reform dominating the headlines, you may not be aware of the new Key Information Document (KID) regulations that are also coming into effect on 6 April 2020.
With off-payroll reform dominating the headlines, you may not be aware of the new Key Information Document (KID) regulations that are also coming into effect on 6 April 2020. All recruitment businesses must provide temporary workers a KID before agreeing terms. This regulation does not apply to temporary workers with existing terms with your recruitment business, only new temporary workers that join after 6 April 2020.
The KID is intended to improve transparency of information for the worker, particularly around pay. Below is a brief bullet point guidance on the format, timing and content of a KID:
Where recruitment businesses have multiple ways of paying agency workers (e.g. PAYE or through an umbrella company) it is expected that the business will have the standard key facts page corresponding to each payment method. Therefore you will be required to obtain the relevant information form the umbrella companies you contract with.
This process is another admin burden for your recruitment business and you will need to review your current processes to ensure you are compliant.
Making the most of the resources available to you will be key in executing the upcoming changes for 6 April 2020. We’ve put together the following IR35 off-payroll reform guide and have run a series of IR35 blogs to provide additional information and guidance.
UHY Hacker Young are recruitment sector specialists and provide expert advice on accounting, finance, taxation and business growth. We understand recruitment and can support you through the ever-changing landscape of this fast-paced industry. With IR35 changes around the corner we can help you build a robust system to tackle this challenge, provide payroll support and review your existing contracts with assistance from our network of other recruitment specialists.